The EU Council and European Parliament have reached a provisional agreement to simplify the Carbon Border Adjustment Mechanism (CBAM), part of the February 2025 Omnibus legislative package, aiming to boost competitiveness while safeguarding climate goals.
A key element of the deal is a de‑minimis mass‑based threshold: importers bringing in less than 50 tonnes of CBAM‑covered goods annually will be exempt from reporting and certificate‑purchase requirements. This threshold is expected to benefit some 90% of importers—including most SMEs—while still covering approximately 99% of embedded carbon emissions.
Beyond the threshold, the agreement includes comprehensive simplification measures for remaining importers:
Streamlined registration and authorisation processes for declarants and customs representatives
Flexible emissions calculation, allowing use of default values or actual data, with simplified verification
Standardised recognition of carbon prices paid outside the EU
Easier data collection and reporting via enhanced access to the CBAM registry
Reduced financial burden through adjusted timelines and lower certificate reserve requirements
The timeline to surrender CBAM certificates for 2026 emissions has been extended—now allowed in February 2027 instead of January 2026 giving businesses more time to comply.
Anti‑abuse provisions have been strengthened, including enhanced anti‑circumvention measures and coordinated enforcement between customs and environmental authorities.
Legislative bodies will now enter trilogue negotiations with the goal of finalising the text by the end of 2025. The Commission plans a full CBAM review in 2026, potentially expanding the mechanism to additional sectors and downstream products.
In summary, the provisional agreement aims for balanced reform: reducing administrative burden on small importers and SMEs while maintaining robust coverage of emissions and ensuring effective compliance
