On September 10, 2025, the European Parliament announced it had approved the simplification of the Carbon Border Adjustment Mechanism (CBAM), introducing a streamlined framework for small importers.

It sets a new minimum threshold of 50 tons of imports per year, and that will be exempt for 90% of importers, mainly small and medium-sized enterprises and individuals, from the CBAM carbon tax. Therefore, it will change the taxation for the exempted goods with a small value from taxation.

The climate ambition for this mechanism remains unchanged because 99% of total carbon emissions from imports of iron, steel, aluminum, cement, and fertilizers will still be covered by the CBAM. It will come with safeguards to make sure this purpose and anti-abuse provisions will be followed to prevent circumvention.

Import regulations under the CBAM have also been simplified, including the authorization process, emissions calculation, verification rules, and financial liability of authorized CBAM.

The beginning of the CBAM certificate purchase has been delayed from January 2026 to February 2027 to cover emissions from the products imported in 2026.