Parliament supports proposals to simplify EU carbon leakage instrument | News

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Parliament supports proposals to simplify EU carbon leakage instrument | News

Parliament today endorsed the Commission’s proposal, which is a part of the

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presented on 26 February 2025. MEPs adopted only technical amendments for clarification purposes and supported a new de minimis mass threshold of 50 tonnes. This would exempt the vast majority (90%) of importers − mainly small and medium-sized enterprises and individuals − who import only small quantities of CBAM goods. The CBAM environmental objectives remain achievable, as 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers would still be covered by the rules.

For the imports covered, the changes also simplify the authorisation process for declarants (parties wishing to import goods subject to the CBAM), the calculation of emissions and the management of CBAM financial liability, while strengthening anti-abuse provisions.

Quote

After the vote, rapporteur Antonio Decaro (S&D, IT) said: “The CBAM is a crucial instrument to help the EU prevent carbon leakage and incentivise climate action outside the EU. I am therefore glad that Parliament decided not to reopen other provisions of the CBAM legislation. This approach enables us to simplify matters for companies without dismantling or weakening the CBAM. We will continue to work quickly to bring legal clarity and certainty to all CBAM stakeholders.”

Next steps

MEPs adopted the text by 564 votes in favour, 20 against and with 12 abstentions. Parliament is now ready to start negotiations with Council on the final shape of the legislation.

Background

The EU’s carbon border adjustment mechanism is the EU’s tool to equalise the price of carbon paid for EU products operating under the

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(ETS) with that of imported goods, and to encourage greater climate ambition in non-EU countries. In early 2026, the Commission will assess whether to extend the scope of the CBAM to other ETS sectors at risk of

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