European Parliament approves simplification proposals for the EU Carbon Border Adjustment Mechanism

The proposals, part of a simplification package called “Omnibus I” presented on 26 February 2025, were adopted by vote.

Parliamentarians only approved amendments of a technical and clarifying nature, while also supporting a new minimum mass requirement for importers of 50 tons. This threshold will exclude the majority (90%) of importers of low volumes of goods covered by CBAM. This will significantly reduce administrative procedures, especially for SMEs and individual importers.

Emphasizing that this exemption will not undermine environmental targets. In fact, 99% of total emissions from imports of products with high carbon footprints, such as iron, steel, aluminum, cement and fertilizers, will still be covered by CBAM.

Changes are not limited to exemptions. Issues such as the authorization process of declarants in the CBAM system, carbon emission calculation methods and management of financial obligations have also been simplified. Anti-abuse provisions were also strengthened to prevent potential abuses.

Antonio Decaro (S&D, Italy), rapporteur, stated after the vote: “The CBAM is critical for the EU to prevent carbon leakage and promote global climate action. Parliament's decision not to change other aspects of the legislation allows us to simplify the system without weakening it. We will now continue to work to ensure legal clarity and certainty for all stakeholders.”

In the next step, the European Parliament announced that it will start negotiations with the European Council on the final version of the regulation.