On 13 May, the European Parliament's Environment Committee (ENVI) approved a series of legislative changes aimed at simplifying the application of Border Carbon Adjustment Mechanism (CBAM) - instrument to tackle carbon leakage outside the EU.

These changes were proposed by the European Commission in February 2025 as part of the simplification legislative package called Omnibus I. The main aim is to reduce the administrative burden for small and medium-sized enterprises (SMEs) and occasional importers without compromising the Union's environmental objectives.

What the proposed amendment does:

50-tonne de minimis threshold: importers bringing less than 50 tonnes of covered products into the EU per year will be exempt from CBAM obligations. The measure is specifically targeted at SMEs and occasional importers, estimated to cover around 90% of importers, but only 1% of the emissions targeted by CBAM.

Simplification of administrative procedures: a clearer and more efficient procedure is proposed for obtaining authorised registrant status, calculating emissions embodied in products, and managing CBAM certificates. Enhanced mechanisms to prevent abuse are also foreseen.

Maintaining climate targets: the changes will not affect the coverage of the main sources of emissions. 99% of emissions from imports of iron, steel, aluminium, cement and fertilisers will continue to remain covered by CBAM.

What are the next steps?

22 May 2025: The proposal is to be voted on in the European Parliament plenary.

Inter-institutional negotiations: if approved, negotiations follow between the European Parliament and the Council of the EU to agree the final form of the regulation.

Adoption and application: once adopted, the amended Regulation will be published in the Official Journal of the EU and will enter into force directly, without requiring national transposition.

What does it mean for European businesses?

For most SMEs and occasional importers, these changes can mean reduced administrative and compliance costs. At the same time, companies remain part of a robust system that ensures a level playing field and promotes global decarbonisation.