On February 26, 2025, the European Commission (EC) unveiled a package of proposals designed to simplify European Union (EU) regulations, boost competitiveness, and unlock additional investment capacity.
Among these proposals, the Carbon Border Adjustment Mechanism (CBAM) stands out as a key initiative aimed at streamlining reporting obligations for importers of goods into the EU, enhancing compliance efficiency, and reducing administrative burdens.
Key highlights of the CBAM proposals:
- Exemption for small importers: Introducing a new CBAM de minimis threshold of 50 tonnes per year, exempting occasional importers of small quantities of CBAM goods. This threshold applies to cumulative annual imports of aluminium, cement, fertilisers, iron and steel.
- Self-identification for exempt importers: Occasional importers will be required to self-identify as "occasional CBAM importers" when lodging customs declarations.
- Expanded scope exploration: While non-calcined kaolinic clays are excluded from CBAM, the Commission is exploring the possibility of expanding the scope of CBAM.
- Flexible emission reporting: Declarants can choose between actual embedded emissions and default values with a mark-up. Default values will be periodically revised to ensure accuracy.
- Purchasing of CBAM certificates: CBAM Certificates will be available to be purchased from 1 February 2027 to cover imports made in 2026. Authorised declarants will not be required to purchase quarterly certificates for the first year.
- Reduced quarterly certificate purchases: The number of CBAM Certificates required to be purchased every quarter will be reduced from 80% to 50% of the total CBAM liability for that quarter.
- Extended declaration deadlines: The deadline for submitting CBAM declarations and surrendering certificates will be moved to 31st August
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