The European Parliament has approved proposals to simplify the EU Carbon Border Adjustment Mechanism (CBAM), aiming to ease administrative demands while maintaining environmental integrity, according to a statement on Thursday.
As part of the European Commission’s Omnibus I package, the changes include a new de minimis mass threshold of 50 tons.
This adjustment will exempt around 90% of importers—mostly small and medium-sized enterprises (SMEs) and occasional importers—from CBAM obligations.
Despite this exemption, the CBAM’s environmental goals remain intact. The revised rules will still cover 99% of carbon dioxide (CO2) emissions from key imported goods such as iron, steel, aluminium, cement, and fertilizers.
These sectors are major sources of carbon leakage, where companies relocate production to countries with looser climate regulations.
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The adopted changes also streamline procedures for importers and simplify the authorization of CBAM declarants, emissions calculation methods, and financial liability management.
Anti-abuse measures have also been reinforced to ensure the system’s integrity.
Rapporteur Antonio Decaro welcomed the decision, emphasizing that the CBAM is a vital tool to prevent carbon leakage in the EU and promote global climate action.
He praised Parliament’s focus on simplification without altering the core legislation, stating this would bring legal clarity and support for businesses without compromising climate goals.
The legislation was adopted with a strong majority: 564 votes in favor, 20 against, and 12 abstentions.
Parliament is now set to begin negotiations with the Council on the final text.
CBAM ensures that imported goods face similar carbon costs as those produced within the EU under the Emissions Trading System (ETS), encouraging cleaner production worldwide.
The Commission will review the mechanism in early 2026 to consider expanding its scope to other sectors at risk of carbon leakage.
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