Carbon Border Adjustment Mechanism: simplification and strengthening

The European Parliament adopted by 564 votes to 20, with 12 abstentions, amendments to the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism.

The matter was referred to the relevant committee for interinstitutional negotiations.

The proposed amendment is part of the first omnibus package aimed at eliminating regulations that are disproportionate to the sustainable transition. It aims to reduce the compliance burden on importers of goods covered by the Carbon Border Adjustment Mechanism (CBAM) and improve the functioning of the CBAM.

Parliament supported the introduction of a new threshold of 50 tonnes, which will exempt the vast majority of importers - mainly small and medium-sized enterprises and individuals - who only import small quantities of goods covered by the CBAM.

With these amendments, Parliament clarified that the CBAM applies to importation of electricity, but it should not apply to electricity generated entirely in the exclusive economic zone of an EEA Member State and imported directly into the customs territory of the Union.

Other technical amendments aim to clarify the text.