The European Commission could propose to postpone the full application of the Carbon Border Adjustment Mechanism (CBAM) by one year, according to a draft regulation obtained by Agence Europe. The importers concerned would start paying for CBAM certificates in February 2027 rather than January 2026, according to a provisional version of the Commission’s proposal, expected on Wednesday 26 February, as part of the first ‘omnibus’ simplification package. According to the Commission, this delay would make it possible to “address significant uncertainties related to the year 2026”.
The other proposed changes correspond to rumours that have been circulating for several weeks in the corridors of European institutions and which we reported (see EUROPE 13585/10). The Commission intends to raise the threshold for applying CBAM, so as to exempt importers of small quantities of CBAM goods.
To do this, it is expected to propose a threshold of 50 tonnes average CO2 emissions per import, instead of the €150 threshold initially planned. This “will exempt the vast majority of importers from obligations under this regulation while maintaining more than 99% of embedded emissions in the scope of the CBAM”, explains the Commission in its draft regulation. The threshold will not apply to electricity and hydrogen imports.
Further changes to the procedures for CBAM declarants will be amended by the forthcoming regulation. The Commission is expected to propose that importers be given the option of reporting a carbon tax already paid on their goods, even when it was paid elsewhere than in the country of origin, i.e. further up the supply chain. This will reduce the final cost of CBAM certificates payable in the EU.
Deadlines for payment of CBAM certificates are expected to be made more flexible: instead of having to pay until June at the latest for emissions imported the previous year, importers will have until November of the year following the imports to pay for CBAM certificates.
See the draft regulation amending the CBAM: https://aeur.eu/f/fmr (Original version in French by Léa Marchal and Anne Damiani)