CBAM: Parliament adopts simplifications to the EU carbon leakage instrument

New threshold will exempt 90% of importers from EU carbon border adjustment mechanism (CBAM) rules

Climate ambition maintained as 99% of CO2 emissions from iron, steel, aluminium and cement imports will still be covered

Procedures for imports covered by CBAM rules will also be simplified

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

On Wednesday, Parliament gave its final green light to changes to the CBAM with 617 votes to 18 and 19 abstentions. These changes are part of the “Omnibus I” simplification package presented on 26 February 2025, which aims to simplify existing legislation in the fields of sustainability and investment.

The amended law sets a new de minimis mass threshold whereby imports up to 50 tonnes per importer per year will not be subject to CBAM rules. It replaces the current threshold exempting goods of negligible value. The new threshold exempts the vast majority (90%) of importers − mainly small and medium-sized enterprises and individuals − who import only small quantities of CBAM goods. The climate ambition behind the mechanism remains unchanged, as 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers will still be covered by the CBAM. The amendments will also bring safeguards to ensure this figure and anti-abuse provisions will be strengthening to prevent circumvention of the rules.

The rules on imports still covered by the CBAM are also simplified, regarding for instance: the authorisation process, the calculation of emissions, verification rules and the financial liability of authorised CBAM declarants.

Quote

After the vote, rapporteur Antonio Decaro (S&D, IT) said: “The CBAM is designed to prevent carbon leakage and protect Europe’s cement, iron, steel, aluminium, fertiliser, electricity, and hydrogen industries. We have answered calls from companies to simplify and streamline the process and exempted 90% of importers of CBAM goods to facilitate competitiveness and growth for our businesses. As the CBAM will still cover 99% of total CO2 emissions, we have maintained the EU’s environmental ambitions and remain fully committed to a just transition and to achieving climate neutrality by 2050.”

Next steps

The text still has to be officially endorsed by Council. It will enter into force three days after publication in the EU Official Journal.

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 greater 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 and how to help exporters of CBAM products at risk of carbon leakage.