The European Commission is considering exempting 80% of companies from its upcoming carbon border levy, according to EU Climate Commissioner Wopke Hoekstra.
Speaking to a European Parliament committee on Thursday, Hoekstra said an analysis by the Commission found that 97% of emissions covered by the tariff come from just 20% of the companies affected by the scheme.
“So would it then not be smart to leave that roughly 80% off the hook, in terms of the administrative work burden? In my view, it would,” Hoekstra said.
He criticised the current approach, arguing that imposing significant paperwork and compliance requirements on businesses with minimal emissions would be ineffective.
The EU carbon border levy, due to take effect in 2026, will impose fees on imported steel, cement, and other carbon-intensive products based on their embedded CO2 emissions.
The proposal to limit administrative burdens could ease compliance for thousands of companies while ensuring the heaviest emitters remain accountable under the scheme.
