The European Parliament has announced that, together with the European Council, it has agreed on the proposed technical changes and simplifications made to the EU’s Carbon Border Adjustment Mechanism (CBAM).
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 designed to prevent carbon leakage and protect Europe’s cement, iron, steel, aluminum, fertilizer, electricity, and hydrogen industries. We have answered calls from companies to simplify and streamline the process and exempted 90 percent of importers of CBAM goods to facilitate competitiveness and growth for our businesses. As the CBAM will still cover 99 percent of total carbon emissions, we have maintained the EU’s environmental ambitions and remain fully committed to a just transition and to achieve climate neutrality by 2050,” Antonio Decaro, rapporteur of the parliament, stated.
Still, the changes have to be endorsed by both Parliament and Council. They will enter into force three days after publication in the EU Official Journal.