- Parliamentary Approval: On May 22, 2025, the European Parliament approved the European Commission’s Omnibus I simplification package for the Carbon Border Adjustment Mechanism (CBAM), which aims to reduce administrative burdens while maintaining the effectiveness of the regulation.
- New Exemptions Threshold: The package introduces a new 50-ton exemption threshold for certain CBAM goods, exempting 90% of current importers from the declarant application process while ensuring that 99% of emissions from CBAM-covered goods remain regulated.
- Next Steps and Business Implications: Following the approval, negotiations with the European Council will finalize the legislation, providing clarity for EU operators. Businesses should prepare for potential future CBAM expansions and focus on compliance strategies to manage the implications of these regulations on competitiveness.
Source EY
