BRUSSELS | 6 OCTOBER 2025
Council Adopts Simplified CBAM Framework to Ease SME Burden
The Council of the EU has adopted a regulation amending the Carbon Border Adjustment Mechanism (CBAM), aiming to reduce the administrative burden on EU importers, particularly SMEs, while maintaining the climate ambition of the scheme. The reform, part of the broader Omnibus I legislative package, introduces a mass-based ‘de minimis’ exemption and a suite of procedural simplifications to support smoother implementation ahead of CBAM’s operational phase starting January 2026.
Under the updated rules, importers bringing in less than 50 tonnes of CBAM goods annually will be exempt from CBAM obligations. This replaces the previous exemption based on consignment value. The threshold is calculated to maintain CBAM coverage over 99% of embedded emissions, thereby safeguarding the scheme’s environmental integrity.
Additional simplifications cover authorisation, data collection, emission calculations, verification procedures, and liability assessments. New flexibility is also introduced, allowing authorised declarants to delegate declaration duties and easing quarterly compliance thresholds from 80% to 50%. The revised regulation also includes transitional measures for importers in early 2026. Those who have applied for CBAM authorisation by 31 March 2026 may continue importing pending the decision, avoiding trade disruption.
CBAM certificate pricing for goods imported in 2026 will reflect the quarterly average EU ETS prices of the respective import period. The regulation also introduces refined provisions on penalties, customs representative responsibilities, and registry processes. Importers exceeding the threshold without authorisation may face financial penalties but be relieved of formal CBAM obligations upon payment.
The legislative act will enter into force three days after its publication in the EU Official Journal. Most provisions apply from 1 January 2026, with certain administrative processes taking effect in 2027.
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