EU: Political agreement reached on CBAM simplification

 On 18 June 2025, the European Parliament and the Council reached a political agreement on amendments to simplify the Carbon Border Adjustment Mechanism (CBAM) Regulation.

The CBAM imposes a carbon cost on imports of certain goods (cement, fertilisers, iron and steel, aluminum, electricity, and hydrogen) based on the carbon emissions associated with their production. Multiple companies and stakeholders have expressed concerns about the administrative burden arising from the CBAM, as well as challenges related to its implementation. 

As part of the first Omnibus simplification package published on 26 February 2025, the European Commission proposed certain changes to the CBAM (see our previous blog post for more details on this proposal).

Although the compromise text is not yet available, the European Parliament’s press release indicates that the co-legislators supported the Commission’s proposal for the introduction of a new de minimis mass threshold. Under this provision, imports up to 50 tonnes per importer per year will not be subject to the CBAM rules, replacing the current threshold that exempts goods of negligible value (set within the customs duty framework).

This new threshold is expected to eliminate CBAM obligations for approximately 182,000, or 90 per cent, of importers, many of which are small and medium-sized enterprises (SMEs). The adjustment is anticipated to save around €1.12 billion in administrative costs while still covering over 99 per cent of emissions. The Parliament also noted in its press release that safeguards have been included to ensure this figure and to prevent circumvention of the rules.

In addition, the co-legislators agreed on several changes designed to simplify processes related to the CBAM, including the authorisation process, the calculation of emissions, verification rules, and the financial liability of authorised CBAM declarants. The press release also says that anti-abuse provisions will be strengthened.

Next steps

The agreed text will now need to be formally adopted by the Parliament first, followed by the Council, before publication in the Official Journal of the European Union (OJEU). The amendments will enter into force three days after publication in the OJEU.

For more information on:

• the CBAM, see our previous client briefing. 
• other Omnibuses, see our Omnibus Tracker.