Are you worried about the administrative burden of the EU’s Carbon Border Adjustment Mechanism? Good news has arrived from Brussels.
The European Parliament and Council have reached a significant agreement that will exempt 90% of importers from CBAM compliance requirements. This development will be particularly valuable for manufacturers and importers who trade in carbon-intensive goods such as iron, steel, aluminium, cement, and fertilisers. The changes directly address industry concerns about administrative complexity whilst maintaining environmental objectives.
What has changed with CBAM?
The new agreement introduces a crucial threshold that transforms CBAM’s scope. Imports up to 50 tonnes per importer per year will no longer be subject to CBAM rules. This replaces the previous threshold that only exempted goods of negligible value.
The lawmakers have been clever with this approach. They have removed 90% of companies from compliance requirements whilst ensuring that 99% of emissions from key carbon-intensive industries remain within CBAM’s scope. This means the environmental impact stays largely intact.
Parliament’s rapporteur Antonio Decaro explained that the changes answer company calls to simplify processes whilst maintaining the EU’s environmental ambitions for climate neutrality by 2050.
Why these changes matter for your business
CBAM was designed to prevent “carbon leakage” – the practice of moving production to countries with weaker environmental policies. Companies importing into the EU need to purchase CBAM certificates to match the carbon price paid by EU producers under the Emissions Trading System.
The administrative burden has been a significant concern for smaller importers. These changes primarily benefit SMEs and individual importers who handle small quantities of affected goods.
Steps to ensure compliance
Even with these exemptions, many companies will still need to comply with CBAM requirements. Here are the essential steps:
- Assess your import volumes: Calculate whether your annual imports of CBAM goods exceed 50 tonnes per year. If they do, you remain subject to CBAM requirements.
- Prepare for 2026 implementation: CBAM comes into full force in 2026. Use the transitional period to establish necessary systems and processes.
- Review simplified procedures: The agreement includes streamlined authorisation procedures, data collection processes, and emission verification rules. Familiarise yourself with these changes.
- Strengthen anti-abuse measures: The new agreement reinforces anti-abuse provisions. Ensure your compliance approach addresses these enhanced requirements.
- Monitor final approval: The changes require final endorsement from both Parliament and Council before entering into force.
Looking ahead
These changes form part of the European Commission’s Omnibus I package, launched in February 2025. The package aims to reduce sustainability reporting burdens by at least 25% for all companies and 35% for SMEs.
Poland’s Minister for the European Union, Adam Szłapka, described the agreement as another step towards reducing administrative burden and boosting EU competitiveness.
Your business should review its CBAM exposure now. Even if you qualify for the new exemption, understanding the full scope of requirements will help you plan for potential growth or changes in import patterns.
The EU has successfully balanced environmental ambition with business practicality. This agreement demonstrates that effective policy can protect both the planet and competitiveness.
Start preparing your CBAM compliance strategy today, even if you expect to qualify for exemptions. Regulatory landscapes evolve, and early preparation ensures you stay ahead of requirements.
Source: https://www.europarl.europa.eu/news/en/press-room/20250613IPR28918/cbam-deal-with-council-to-simplify-eu-carbon-leakage-instrument
