EU Omnibus: Adjustments to the Carbon Border Adjustment Mechanism — What Do They Mean for Businesses?

The EU Carbon Border Adjustment Mechanism introduces a price or duty on greenhouse gases emitted during the production of carbon intensive goods imported into the EU. As part of the reforms introduced in the Omnibus Simplification Package, the European Commission has proposed changes to streamline CBAM and enhance its effectiveness.

The broad amendments include:

• De minimis exemption for small importers.
• Streamlining authorisation for importers.
• Simplified emissions calculations.
• Stronger anti-abuse measures.
• A deadline adjustment.
• Simplification of financial liabilities.
• Default values for carbon prices paid in third countries.
• Removal of cancellations from the common central platform and CBAM registry exchange.

In Part 2 of our series covering the Omnibus Directives proposals, we provide an overview of these adjustments to the CBAM Regulation (EU 2023/956) and what they mean for businesses and stakeholders.