Council and European Parliament agree on amendments to CBAM

On June 19, the EU Council and the European Parliament agreed on changes to the cross-border carbon adjustment mechanism (CBAM), which are part of the Omnibus I simplification package presented in February.

A new de minimis weight threshold was supported, according to which imports of up to 50 tons per importer per year will not be subject to CBAM. This exempts 90% of importers – mainly small and medium-sized enterprises and individuals – who import only small quantities of goods included in the mechanism.

Co-legislators also agreed to changes to simplify CBAM-covered imports, such as the authorization process, emissions calculation and verification rules, and the financial responsibility of authorized declarants, while strengthening anti-abuse provisions.

«We have responded to calls from companies to simplify and streamline the process and have exempted 90% of importers of CBAM goods to promote competitiveness and growth of our businesses. As the mechanism will still cover 99% of total carbon emissions, we are keeping the EU’s environmental ambitions alive and remain fully committed to a just transition and to achieving climate neutrality by 2050,» said rapporteur, MEP Antonio Decaro after the agreement was signed.

The preliminary agreement is yet to be approved by both the European Parliament and the European Council. It will enter into force three days after its publication in the Official Journal of the EU.

As GMK Center reported earlier, the European Network of Transmission System Operators for Electricity (ENTSO-E) proposed to the European Commission to extend the CBAM transition period for electricity by one year, until January 1, 2027. In its position, it supported the general principles of the cross-border carbon adjustment mechanism, but warned against creating a disproportionate administrative burden and costs for TSOs.