The European Parliament has approved changes to the EU’s carbon border adjustment mechanism (CBAM), simplifying the rules and exempting 90% of importers.
The European Parliament approved changes to the EU’s carbon border adjustment mechanism (CBAM) on 22 May 2025, simplifying the rules and allowing 90% of importers to be exempt from the CBAM regulations.
The proposal is a part of the “Omnibus I” simplification package, which was presented on 26 February 2025.
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 aligning competitiveness with climate goals, the EU is creating conditions for businesses to thrive, attract investment, meet shared objectives like the European Green Deal, and unlock their full economic potential.
The proposed changes to the EU carbon border adjustment mechanism (CBAM) are part of simplification efforts to reduce the administrative burden for SMEs and occasional importers.
These are:
- New de minimis mass threshold of 50 tonnes would exempt 90% of importers from EU carbon border adjustment mechanism rules.
- Environmental ambition maintained as 99% of CO2 emissions from iron, steel, aluminium and cement imports would still be covered.
MEPs adopted only technical amendments for clarification purposes and supported a new de minimis mass threshold of 50 tonnes. This would exempt the vast majority (90%) of importers − mainly small and medium-sized enterprises and individuals − who import only small quantities of CBAM goods. The CBAM environmental objectives remain achievable, as 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers would still be covered by the rules.
For the imports covered, the changes also simplify the authorisation process for declarants (parties wishing to import goods subject to the CBAM), the calculation of emissions and the management of CBAM financial liability, while strengthening anti-abuse provisions.
Quote
After the vote, rapporteur Antonio Decaro (S&D, IT) said: “The CBAM is a crucial instrument to help the EU prevent carbon leakage and incentivise climate action outside the EU. I am therefore glad that Parliament decided not to reopen other provisions of the CBAM legislation. 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.”
Next steps
MEPs adopted the text by 564 votes in favour, 20 against and with 12 abstentions. Parliament is now ready to start negotiations with Council on the final shape of the legislation.
Background
The EU’s carbon border adjustment mechanism is the EU’s tool to equalise the price of carbon paid for EU products operating under the EU emissions trading system (ETS) with that of imported goods, and to encourage greater climate ambition in non-EU countries. In early 2026, the Commission will assess whether to extend the scope of the CBAM to other ETS sectors at risk of carbon leakage.
