The European Parliament’s Environment Committee has approved proposals to simplify the EU’s Carbon Border Adjustment Mechanism (CBAM), aiming to ease administrative burdens for small and medium-sized enterprises (SMEs) and occasional importers, without weakening the scheme’s environmental objectives.
As part of the European Commission’s broader “Omnibus I” simplification package, the endorsed changes include the introduction of a new de minimis mass threshold of 50 tonnes, which would exempt around 90% of importers—primarily SMEs and individuals—from CBAM compliance requirements. Despite this exemption, the mechanism will continue to cover 99% of CO₂ emissions from imports of high-emission goods such as iron, steel, aluminium, cement, and fertilisers.
The revised proposals also streamline the authorisation process for importers (known as declarants), simplify emissions calculations, and clarify financial liability rules under the CBAM. Additionally, the reforms strengthen safeguards against potential abuse.
Following the committee vote, rapporteur Antonio Decaro (S&D, Italy) noted: “A majority in the committee agreed to limit amendments to the Commission’s proposals and not reopen other provisions of the CBAM legislation, which is crucial to preventing carbon leakage. This approach allows us to simplify procedures without weakening the mechanism.”
The draft legislation was adopted with 85 votes in favour, one against, and one abstention. The full European Parliament will vote on the proposals on 22 May 2025, after which negotiations with the Council of the EU will begin.
The CBAM, which complements the EU Emissions Trading System (ETS), is designed to level the playing field for EU producers by placing a carbon price on imports of high-emission goods. The mechanism aims to encourage third countries to raise their climate ambitions. The European Commission is expected to assess by early 2026 whether to expand CBAM coverage to other sectors at risk of carbon leakage.
