10 avril 2025

Changes to CBAM through Omnibus legislative package

In-depth analysis

European Commission plans CBAM reform to simplify the new carbon border adjustment mechanism and increase competitiveness

The European Commission has adopted a new package of proposals to simplify EU rules and increase competitiveness which is termed the Omnibus package. This package of measures contains diverse proposals on several areas of law and is intended to lead to far-reaching simplifications in the areas of sustainable finance reporting, sustainability due diligence, EU taxonomy, European investment programmes and Regulation (EU) 2023/956 on the creation of a Carbon Border Adjustment Mechanism (CBAM). We have already reported on the background and scope of CBAM.

Regarding the CBAM, the reform proposal is intended to simplify the administrative requirements for importers. Small and medium-sized enterprises are to be relieved, while at the same time the efficiency of monitoring and the implementation of the CBAM mechanism is to be improved.

With the planned reform, the scope of CBAM will only apply from a certain de minimis threshold - which is higher than the previous regulations. In addition, the reporting obligations are to be simplified, emissions verification is to be made more flexible and some deadlines are to be postponed, while at the same time abuse and circumvention are to be prevented.

The most important proposed changes to CBAM at a glance

Raising the de minimis threshold

One of the key aspects of the Omnibus reform is the increase of the so-called de minimis threshold. Previously, only goods with a value of up to €150 per shipment were exempt from CBAM. In future, the limit for the import of 50 tonnes/year of CBAM-relevant goods will be raised.

As a result of this change, approximately 90% of importers will no longer be subject to CBAM. At the same time, it should still be ensured that 99% of emissions continue to be covered by CBAM.

Simplification of reporting obligations, especially when determining “grey emissions”

The determination of actual grey emissions, which is necessary for reporting obligations and for the purchase of CBAM certificates, often presents manufacturers and importers with major challenges. The Omnibus reform is intended to enable importers to use certain standard values when determining emissions.

Postponement of the sale of CBAM certificates

The launch of sales of CBAM certificates by Member States will be postponed from January 2026 to February 2027 to avoid uncertainties in implementation and to improve the exchange of information between the currently active CBAM Registry and the proposed “common central platform”.

Protection against circumvention and misuse

To further strengthen the effectiveness of the CBAM mechanism, the Omnibus reform seeks to tighten provisions aimed at preventing the circumvention and abuse of the CBAM provisions.

Possibility to involve service providers in the submission of CBAM declarations

In future, importers will be able to have the CBAM declaration submitted by a representative acting in the name and on behalf of the importer. For example, service providers can be involved in fulfilling the reporting requirements.

Although the legal responsibility for the reporting obligations remains with the importer, the option of involving service providers can make things considerably easier for the importers and those responsible for making the CBAM declarations.

Extended crediting of CO2 prices paid in third countries

The consideration of CO2 prices paid in third countries when calculating the number of CBAM certificates to be acquired is to be simplified. In addition, CO2 prices paid in third countries that do not correspond to the country of origin of the goods can also be taken into account.

Conclusion and outlook

The changes presented bring considerable relief for affected companies. In particular, the increase in the de minimis threshold is a welcome adjustment to the CBAM mechanism, as small and medium-sized companies will be relieved without weakening the mechanism, as - according to the EU Commission - 99% of imported emissions will probably continue to be covered. The simplification of processes, particularly in the determination of grey emissions, is also overdue, as many companies can only meet the current requirements with disproportionate effort and/or costs. However, the adjustments do not go far enough for many of those affected. For example, the German Engineering Federation (VDMA) is calling for the limit to be raised to 150 or 200 tonnes to create “real relief” for especially for SMEs.

It remains to be seen in what form the proposed changes will be implemented. The EU Commission’s reform has not yet entered into force and requires the approval of the European Parliament and the Council.

If you have any questions about CBAM and the associated legal issues, we will be happy to assist you.

With the Taylor Wessing CBAM check, potentially affected companies can initially check whether they are affected by CBAM.

Secteurs Énergie et infrastructure