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The Council has adopted its general approach on a key part of the ‘Omnibus I’ package, aimed at simplifying the EU’s Carbon Border Adjustment Mechanism (CBAM) while preserving its environmental ambition. The revised proposal will reduce administrative and regulatory burdens, particularly for SMEs, without compromising the climate impact: 99% of embedded emissions from imported CBAM goods will still be covered.

A core feature of the proposal is a broader de minimis exemption. This would relieve importers from CBAM obligations if their imports remain below a 50-tonne annual threshold, replacing the current limited exemption for goods of negligible value. The change is expected to remove compliance requirements for many small importers and individuals.

Additional simplifications include:

• Streamlined authorisation processes for CBAM declarants
• Easier data collection and emissions calculation methods
• Simpler verification rules
• A clearer system for accounting financial liability during the import year
• Improved mechanisms for recognising carbon prices paid in third countries

The Council also amended the Commission’s proposal to ensure clearer and more practical implementation. It fully supports the 50-tonne threshold and calls for swift progress in negotiations.

This initiative responds directly to the 2024 calls from EU leaders and the recommendations of the Letta and Draghi reports. It aligns with the broader push for a “simplification revolution” as outlined in the Budapest Declaration. With the Council’s position adopted, interinstitutional negotiations with the European Parliament are set to begin.

Source: Council of the EU