The European Parliament has announced that it has voted in favor of the technical changes and simplifications made to the EU’s Carbon Border Adjustment Mechanism (CBAM). The parliament will now begin negotiations with the European Council to finalize the legislation.
The changes will introduce a new cumulative annual CBAM threshold of 50 mt per importer, exempting 90 percent of importers - mainly small and medium-sized enterprises (SMEs) and individuals importing small quantities of CBAM products - from CBAM rules, while still covering 99 percent of emissions from iron, steel, aluminum and cement imports. The changes will also simplify the authorization process for declarants, the calculation of emissions and the management of CBAM financial liability, while strengthening anti-abuse provisions. These changes aim to reduce the administrative burden for SMEs and occasional importers.
“The CBAM is a crucial instrument to help the EU prevent carbon leakage and incentivize climate action outside the EU. This approach enables us to simplify matters for companies without dismantling or weakening the CBAM. We will continue to work quickly to bring legal clarity and certainty to all CBAM stakeholders,” Antonio Decaro, rapporteur of the parliament, stated.