CBAM: Upcoming Simplifications (Omnibus-Package) and Importer’s obligations in 2025
As part of the "Omnibus Package I", the EU Commission is proposing changes to the Carbon Border Adjustment Mechanism in response to ongoing criticism of the overly complex regulations. At the same time, importers remain legally obliged to continue CBAM reports and preparations for full implementation in 2026 until the amendments are gazetted. This article outlines the planned changes and shows what (nevertheless) needs to be done in 2025.
1. Proposed CBAM Amendment
The amendment is intended to exclude 90% of the companies previously subject to CBAM, while at the same time 99% of all emissions associated with imports of CBAM-goods will be priced at the border from 2026. At the same time, simplifications will be introduced in various areas making compliance easier for both EU companies and third-country manufacturers of CBAM goods. The changes still have to be decided upon by the Council and the EU Parliament. A lot can still change.
1.1 New Threshold: 50 Tonnes of CBAM Goods Instead of € 150 per Consignment
The most important change is the introduction of a new threshold for the application of the CBAM-Regulation (Regulation (EU) 2023/956). The Regulation should only apply to importers importing 50 tonnes of CBAM goods or more per year. Only imports of electricity and hydrogen will not be subject to this new threshold. The de minimis threshold is to be applied to each CBAM declarant individually, i.e. in case of a group of companies for it applies to each group company individually.
According to the draft regulation, the status "authorised CBAM declarant" will only be necessary for importers exceeding the threshold. However, the draft is not clear in this respect. Article 4 CBAM-Regulation remains unchanged, according to which, as of 1 January 2026, customs must not allow imports if the importer is not an authorized CBAM declarant. Further details remain open.
1.2 Purchase of CBAM Certificates and Deduction of CO2 Prices
The financial burden of CBAM on companies is to be postponed. The sale of CBAM certificates for 2026 will begin only in February 2027. This means that no CBAM certificates will have to be purchased in 2026 (although they should be considered in price calculations). The number of CBAM certificates that must be held in account by the Authorised CBAM Declarant at the end of each quarter will be reduced from 80% to 50%. At the same time, there will be restrictions on the return of CBAM certificates that are not required.
As information on CO2 prices actually paid in third countries is often difficult to obtain, the EU Commission aims to publish "standard values" for CO2 prices in third countries. The details will be regulated separately.
1.3 Delegation of Reporting Obligations and Extension of Submission Deadlines
The draft provides for the delegation of CBAM duties by authorized CBAM declarants to third parties. This will allow companies to outsource or concentrate tasks within the group. However, the authorised CBAM declarant remains responsible for compliance with the regulations.
The due date for the CBAM declarations for a calendar year is moved from 31 May to 31 October of the following year. If the draft becomes law, the CBAM declaration for 2026 must therefore be submitted by 31 October 2027.
1.4 Simplifications in the Determination of Embedded Emission
The draft regulation itself does not yet contain detailed simplifications with regard to the determination of emissions. However, it does create the legal basis for many (helpful) simplifications. For example, it is envisaged that the EU Commission will have to adjust the system boundaries for CBAM goods to be comparable to the system boundaries of the EU Emissions Trading System. For many complex goods, this is currently not the case, creating enormous administrative costs for SME suppliers from third countries. Following these amendments, emissions from manufacturing processes in third countries that would not be subject to the EU ETS if the production would take place in the EU, will no longer be part of the system boundaries of CBAM. Further, the embedded emissions of CBAM precursors originating from the EU would not need to be accounted for, if the amendments become law.
1.5 Accredited Verifiers
The draft regulation contains new provisions on accredited verifiers and the respective authorisation procedure. The wording of the draft regulation is unclear whether the new regulation is intended to create a legal obligation for accredited verifiers to accept verification requests from third country installation operators.
1.6 Continuous Plans to Extend the Scope of Application; Stricter Enforcement
Companies that would remain subject to CBAM after the amendments should expect that the catalogue of goods will be expanded. In particular, the EU Commission expressly mentions the extension to downstream goods:
"Simplifying the mechanism would also be a key enabler for a potential future scope extension, notably to downstream goods."
By focussing on the "larger" importers the EU Commission also aims to reduce the administrative burden on national and EU authorities. The EU Commission intends to strengthen the prosecution of non-compliance and circumvention activities. In addition to stricter monitoring, the draft regulation provides for higher penalties. The national customs authorities are also to monitor the flow of CBAM good.
2. Germany: Amendments to the Treibhausgasemissionshandelsgesetz – Administrative Procedure on the Status "Authorised CBAM Declarant"
At the beginning of February, the Bundestag and Bundesrat passed an amendment to the German Treibhausgasemissionshandelsgesetz. This contains (long overdue) administrative regulations for the national competent authority (Deutsche Emissionshandelsstelle). Further, the legislator permitted the national competent authority to delegate the administration of the application procedures for the authorized CBAM declarant status to a private entity, who will decide on the applications on behalf of the German authorities.
3. What (still) Remains to be Done in 2025
As a rule and as long as the amendments have not yet been adopted by Parliament and the Council, importers would need to continue preparing for the full implementation of CBAM 2026. Further, CBAM reporting obligations remain in effect as they currently are. However, this should be done with a sense of proportion. The amendments are widely expected to become law.
Companies expecting to import 50 tonnes or more of CBAM goods in 2026 must in any case register as authorized CBAM declarants and prepare for the purchase of CBAM certificates. The reporting obligations must be fulfilled by all importers until amendments become effective. Companies should also continue to ensure that the requirements for the status authorized CBAM declarant are met in order to prevent supply chain disruptions on 1 January 2026 should the Council or Parliament fail to raise the threshold. Lastly, the CBAM costs arising in 2026 (and becoming due in 2027) should also continue to be factored in and corresponding risks hedged in contracts if their term extends beyond 2025.
