Commission welcomes political agreement to simplify and strengthen the carbon border adjustment mechanism

European Commission - Press release Commission welcomes political agreement to simplify and strengthen the carbon border adjustment mechanism Brussels, 18 June 2025 The European Commission welcomes the provisional political agreement reached between the European Parliament and the Council today on the Commission proposal to simplify and strengthen the EU's carbon border adjustment mechanism (CBAM). On 26 February 2025, the Commission proposed simplifications to the CBAM regulation to reduce administrative burdens for businesses, while maintaining the functionality of the CBAM measure. The key aspect of the proposal is a new exemption threshold of 50 tonnes for CBAM goods. This means that companies which do not exceed a single mass-based threshold set at a level of 50 tonnes of imported goods per importer per year, are exempt from CBAM obligations. The proposed measure will therefore mostly apply to SMEs and individuals, which import small or negligible quantities of goods covered by the CBAM regulation. As a deliverable of the Clean Industrial Deal, it is an important contribution to boost EU's competitiveness and unlock our full economic potential and investment capacity. The simplification seeks to provide cost-efficient compliance improvements to the CBAM regulation, without compromising its climate goals. About 99% of emissions in the imported CBAM goods would still be covered. The overall aim is to reduce the regulatory and administrative burden, as well as...