CBAM: new Commission proposal will simplify and strengthen

The European Commission has adopted a new package of proposals to simplify EU rules, boost competitiveness, and unlock additional investment capacity. This is a major step forward in creating a more favourable business environment to help EU companies grow, innovate, and create quality jobs.

By bringing our competitiveness and climate goals together, we are creating the conditions for EU businesses to thrive, attract investment, achieve our shared goals – such as the European Green Deal objectives – and unlock our full economic potential.

These first ‘Omnibus' packages of 26 February 2025 bring together proposals in a number of related legislative fields, covering a far-reaching simplification in the fields of sustainable finance reporting, sustainability due diligence, EU Taxonomy, carbon border adjustment mechanism, and European investment programmes.

As part of this, the Commission proposed a set of changes to simplify CBAM and make it more effective.

• Firstly, the Commission proposes to simplify CBAM for small CBAM importers, mostly SMEs and individuals, by introducing a new CBAM de minimis threshold exemption of 50 tonnes mass. These are importers who import small quantities of CBAM goods, representing very small quantities of embedded emissions entering the EU from third countries. This means keeping around 99% of emissions still in the CBAM scope, while exempting around 90% of the importers. 
• For those importers who remain in the CBAM scope, the proposed changes will also facilitate compliance with CBAM obligations. For instance, by simplifying the authorisation of declarants, the calculation of emissions, and the management of CBAM financial liability.
• This will be coupled with measures making CBAM more effective, by strengthening anti-abuse provisions and developing a joint anti-circumvention strategy together with national authorities. 

Next steps

Simplification is key to reducing administrative burden for SMEs and occasional importers. This learning period, during the CBAM transitional phase, has allowed us to develop the policy measures jointly with stakeholders. Simplification is also a precondition to review CBAM and make it stronger and more efficient.

Going forward, the next steps will include a full review of CBAM later this year, to assess its potential extension to other ETS sectors, downstream goods, indirect emissions. The Commission will also examine, in this context, how to help exporters of CBAM products at risk of carbon leakage. This will be followed by a legislative proposal in early 2026.

Read more

Press Release: Commission simplifies rules on sustainability and EU investments

CBAM webpage: Carbon Border Adjustment Mechanism - European Commission