EU moves to make CBAM rules more flexible for SMEs, keeping 99% of emissions covered

The European Parliament’s Environment Committee has approved key changes to the EU’s Carbon Border Adjustment Mechanism (CBAM) – a carbon pricing tool aimed at high-emitting imports, such as steel and cement. The measure seeks to reduce bureaucracy for small and medium-sized enterprises (SMEs), while maintaining the environmental rigor of the system. Under the revised proposal, a new de minimis threshold of 50 tonnes would exempt approximately 90% of importers, mainly SMEs and individuals, from the reporting requirements of the CBAM. This change is part of a broader approach. Simplification package “Omnibus I” Introduced by the European Commission in February 2025.

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