In a press release published on February 26, 2025, the European Union (EU) Commission announced the adoption of a new package of proposals to simplify and strengthen the Carbon Border Adjustment Mechanism (CBAM) process.

The proposed changes include:

• The exemption of small importers from CBAM obligations with the adoption of new de minimis threshold exemption of 50 tons mass, which will exempt around 90% of importers.
• The simplification of the rules for companies that remain in CBAM scope regarding authorization of CBAM declarants, as well as the rules related to CBAM obligations, including the calculation of embedded emissions and reporting requirements.
• The adoption of measures that strengthen anti-abuse provisions and the development of a joint anti-circumvention strategy.

The EU Commission also stated its next steps for CBAM include a full review to assess its potential extension to other EU Emissions Trading System (ETS) sectors, downstream goods, and indirect emissions. This will be followed by a new legislative proposal on the scope extension of CBAM in early 2026.

The EU press release can be found here:
https://taxation-customs.ec.europa.eu/news/cbam-new-commission-proposal-will-simplify-and-strengthen-2025-02-26_en