CBAM Omnibus Reform: European Parliament Approves Draft Law
CBAM Weekly – Issue 61
Final steps oft he legislative process
The European Parliament this week approved the final draft of the CBAM Omnibus Regulation by a large majority. This marks an important step in the further development of the Carbon Border Adjustment Mechanism. While formal approval by the Council is still pending, no substantive changes are expected. The new rules introduce numerous adjustments that will provide companies with greater legal certainty, planning scope, and operational relief in the future. Below we summarize the most important changes for affected companies.
Complete exemption for micro-importers
One of the most significant innovations is the introduction of a clear threshold for the applicability of CBAM. Companies importing less than 50 tonnes of CBAM-covered goods per year will be fully exempt from the regulation in the future. This long-awaited exemption not only creates clarity but also significantly reduces administrative burden. Smaller companies or those that only occasionally make relevant imports will particularly benefit. Associations and chambers of commerce had long advocated for such a de minimis threshold, which is now legally enshrined. On the other hand, companies that exceed the 50-tonne threshold, even minimally, must comply with all obligations under the regulation, including the purchase of certificates, for all imported goods. This raises questions about equal competition conditions, particularly for companies that are only slightly above the threshold.
Deferred start of certificate purchases
Originally, companies were expected to start purchasing CBAM certificates in 2026. This date has now officially been postponed to February 2027. However, this does not mean financial relief, as certificates must still be purchased retroactively for all imports from 2026. The change thus only affects the timing of payment, not the amount of the obligation. Companies should therefore prepare early for the retroactive burden and ensure that the required emissions data for 2026 is fully available. This new transitional phase in the regular application of the mechanism creates significant challenges for business planning certainty. More flexibility in certificate management The previous obligation to hold 80 percent of the required certificates on a quarterly basis will be reduced to 50 percent. This gives companies greater flexibility in managing their certificates and allows them to plan purchase timings more strategically. This adjustment is particularly advantageous in the case of seasonal fluctuations or volatile markets. In addition, the short-term liquidity burden will be reduced, improving the overall predictability and management of CBAM costs.
Extension of the deadline for the CBAM report
There is also an important change regarding the submission of the annual CBAM report. Instead of the previous deadline at the end of July, the report must now be submitted by the end of October. This additional time provides companies with a more realistic framework for obtaining the necessary verified emissions data from their suppliers. Especially in complex supply chains, this extension is a decisive advantage. Recognition of CO₂ prices from third countries A technical but very effective detail of the new regulation concerns the recognition of CO₂ prices paid outside the country of origin. In the future, CO₂ prices paid in other third countries can also be deducted, provided they are compatible with CBAM requirements. This change reflects the reality of global supply chains and avoids double taxation. At the same time, it contributes to fairer competition in international trade.
Option to appoint a CBAM representative
Another innovation is the introduction of the so-called CBAM representative. Companies will in the future be able to appoint an external representative who is solely responsible for fulfilling CBAM obligations – independently of customs declarations. This option provides additional organizational flexibility and is particularly interesting for companies with decentralized procurement processes or limited internal resources. Service providers can also specifically offer CBAM compliance as a specialized service.
What companies should do now
The adopted changes create new opportunities for companies but also increase the complexity of the system, particularly with regard to next year. Companies benefiting from the new threshold rule can sit back for now. All others should carefully review the new deadlines and requirements, adapt their internal processes, and especially prepare for the certificate obligation starting in 2027. Early analysis of cost impacts and strategic procurement decisions will become increasingly important.
Support in adapting processes
If you need support in assessing these changes or adjusting your processes, please feel free to contact us at helge@kolum.earth. We will support you on your way to a legally compliant and efficient CBAM strategy.