MEPs support proposals to simplify EU carbon leakage instrument

A new de minimis mass threshold of 50 tonnes would exempt 90% of importers from EU carbon border adjustment mechanism rules

Environmental goal kept as 99% of CO2 emissions from iron, steel, aluminium and cement imports would still be covered

Plenary to vote on changes on 22 May 2025

The proposed changes to the EU carbon border adjustment mechanism (CBAM) are part of simplification efforts to reduce the administrative burden for SMEs and occasional importers.

Parliament’s Committee on the Environment, Climate Change and Food Safety today endorsed the Commission’s proposal, which is a part of the “Omnibus I” simplification package presented on 26 February 2025. MEPs adopted only technical amendments for clarification purposes and support a new de minimis mass threshold of 50 tonnes, which would exempt the vast majority (90%) of importers − mainly small and medium-sized enterprises and individuals − who import only small quantities of CBAM goods. The CBAM’s environment goal is maintained, as 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers would still be covered by the rules.

For the imports covered, the changes also simplify authorisation of declarants (parties wishing to import goods subject to the CBAM), the calculation of emissions and the management of CBAM financial liability, while strengthening anti-abuse provisions.

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After the vote, rapporteur Antonio Decaro (S&D, IT) said: “A majority in the committee agreed to limit amendments to the specific proposals by the Commission and to not reopen other provisions of the CBAM legislation, which is so crucial to prevent carbon leakage. This approach enables us to simplify matters for companies without dismantling or weakening the CBAM. We will continue to work as fast as possible to bring legal clarity and certainty to all CBAM stakeholders.”

Next steps

MEPs adopted the text by 85 votes in favour, 1 against and with 1 abstention. On 22 May 2025, Parliament as a whole is scheduled to adopt its mandate for negotiations with Council on the final shape of the legislation.

Background

The EU’s carbon border adjustment mechanism is the EU's tool to equalise the price of carbon paid for EU products operating under the EU emissions trading system (ETS) with that of imported goods, and to encourage higher climate ambition in non-EU countries.

In early 2026, the Commission will assess whether to extend the scope of the CBAM to other ETS sectors at risk of carbon leakage.