European Commission’s Proposed Omnibus Simplification Package: What Are the Main Changes for Importers of CBAM Goods?

On 26 February 2025, the Commission proposed a sustainability simplifications package, commonly referred to as the Omnibus package. Among the sustainability reporting and due diligence provisions, the Omnibus package would also bring about changes to the EU’s unilateral environmental measure, the carbon border adjustment mechanism (CBAM). CBAM entered into application in its transitional phase in October 2023 and is now halfway towards its definitive implementation. The proposed deregulation brings about improvements in several CBAM areas, including scope, and reporting and procedural requirements. In this alert, we outline those suggested amendments that are likely to be of most importance to businesses involved in trading in CBAM goods.

Revised de minimis rule: a big relief for small importers

Regarding scope, a new de minimis rule would be introduced for the four sectors that concern multiple small importers: iron and steel, aluminum, fertilizers and cement. Instead of the existing exemption for consignments with a value of less than EUR 150, the Commission proposes relying on a de minimis threshold relating to the annual net quantity of CBAM imports to determine whether the importer falls within CBAM’s scope. The proposed de minimis threshold is set at 50 tons per year, with the possibility to revise this amount during the annual CBAM assessment.

In practice, this would mean that if the quantity of CBAM imports does not exceed the 50 ton threshold, the importer would not need to perform any CBAM-related obligations. When lodging the customs declaration, it would be enough to indicate “occasional CBAM importer”. At the same time, the importer would need to carefully monitor its import quantity so as not to exceed the annual de minimis threshold. It is implied that in cases where the annual quantity is expected to exceed the threshold, the importer would be given the possibility to apply for authorized CBAM declarant status.

The first 50 tons are not deducted from the annual volume exceeding this threshold: if annual import volume exceeds the threshold, the CBAM obligation applies to the entire import volume.

To mitigate potential risks, the Commission and national competent authorities intend to monitor customs data to identify importers exceeding the threshold. In case of non-authorized imports above the threshold, the importer would not be permitted to continue importing CBAM goods and a penalty would be imposed. The failing declarant would be treated as an authorized CBAM declarant. Additionally, penalties would be applied if there was an artificial splitting of the allowed quantity among group companies with different Economic Operators’ Registration and Identification (EORI) numbers in order to circumvent CBAM obligations.

Simplifications for larger importers

Non-occasional importers would also enjoy certain simplifications in terms of administrative burden, substantive reporting and methodology requirements. The key changes include the following:

Authorization of declarants

The Commission proposes alleviating the administrative burden when registering as an authorized CBAM declarant and performing reporting obligations. It suggests that the consultation process between competent authorities and the Commission be made optional. The competent authorities would themselves be able to decide whether they needed to consult their counterparts in other Member States and/or the Commission in order to monitor and check information submitted before other competent authorities.

A new formal role (that of “CBAM representative”) would be created, other than the importers or customs representatives, in order to facilitate the submission of CBAM reports. Such CBAM representatives, who would be third parties with the necessary environmental expertise, would be able to submit the reports and calculate emissions on behalf of importers.

Reporting requirements and deadlines

Another key change impacting CBAM obligations relates to the reporting deadlines. In the early years of the definitive implementation of CBAM, the Commission proposes to extend the deadline to submit the annual CBAM declaration and surrender CBAM certificates from 31 May to 31 August. This would also affect other deadlines linked to this date. Specifically, the authorized CBAM declarant would need to submit a request to repurchase excess certificates by 30 September (previously 30 June) and the Commission would have to cancel unused certificates on 1 October, instead of 1 July.

The Omnibus package allows for accredited verifiers to have access to the CBAM Registry, so that they are able to submit, review and revise verification reports directly in the Registry.

The Commission proposes that companies report through their controlling entity. This entity would then be able to access the operators’ portal and upload the emissions’ data and verification reports for all of its related parties. Any third country operators would need to submit a to-be-determined corporate identifier.

CBAM financial liability

The Commission proposes three key improvements, which will be beneficial to the financial position of importers.

First, the “80% rule” will be replaced by the “50% rule.” The 80% rule requires a declarant to buy and have available on its account at the end of each quarter, the number of CBAM certificates that corresponds to 80% of emissions for goods imported from the beginning of each year, to be calculated based on default values. The proposed change concerns not only the decrease of that percentage from 80% to 50%, but also the importer’s ability to choose between a calculation based on default values minus a mark-up, or on the actual number of CBAM certificates surrendered in the previous year for the same CBAM goods.

Secondly, under the current rules the declarant may sell, and the Commission or Member States may accordingly repurchase, only one third of CBAM certificates purchased in excess. This may result in companies experiencing cash flow problems following the overbuying of certificates. The Commission now suggests to remove this one third limit.

Lastly, to assist importers in the first year of definitive CBAM implementation, the proposal would postpone the obligation on importers to buy CBAM certificates as from 1 January 2026 until 1 February 2027. This would allow importers to collect emissions’ data more diligently and assess more accurately how many certificates they should surrender. In the first year, the CBAM certificate price will be based on the quarterly average of the closing prices of the EU ETS allowances for the quarter in which the CBAM goods are imported.

Carbon prices paid in third countries

The Commission further proposes to introduce default values for carbon prices paid in third countries for the same goods. Currently, the importer needs to provide documentary evidence of the paid carbon price, prove that it indeed relates to the imported CBAM goods and show that it was independently verified. It is burdensome in certain cases to prove that the carbon price was paid. As a solution, the Commission will prepare carbon price default values per country. At the same time, the importer may use the actual default values, which may be adjusted based on evidence of the carbon price actually paid.

Emissions’ calculations and verifications

In addition, the Commission has proposed several technical changes, including the following:

• Non-calcined kaolinic clays (used e.g., in the manufacture of ceramics) would be removed from the CBAM scope.
• The Commission would no longer be required to “specify the conditions under which it is deemed that actual emissions cannot be adequately determined.” There would still be a choice between actual emissions’ data and default values.
• Where default values cannot be applied for a particular type of CBAM goods, the Commission proposes using the average emission intensity of the ten countries with the highest emission intensities for which reliable data are available, instead of the worst EU ETS installations’ emissions data.
• It is clarified that emissions based on default values do not need to be verified.
• Downstream processing emissions would be outside the CBAM scope and precursor (input) emissions would be used for calculation instead. An example is the production of fasteners (screws, bolts, nuts, etc.).
• Precursors (inputs) produced in the EU would also be outside the CBAM scope.
• The Commission clarified that indirect emissions of electricity do not need to be reported.

Conclusion

If adopted by the European Parliament and the Council, the Omnibus package’s CBAM simplifications should significantly reduce the administrative burden upon EU importers of CBAM goods. Most SMEs and occasional importers would fall outside the CBAM scope and be released from burdensome reporting obligations. The 50 ton threshold would still allow 99% of carbon emissions to be captured, which is the goal that the Commission has set for itself. The Commission has estimated that around 182,000 importers, some 90% of total importers, would benefit from the proposed simplifications.

Of course, CBAM importers would need to ensure that their annual import volume stays under the de minimis threshold in order to be free of reporting obligations. In cases where the threshold is likely to be exceeded, the importer would have to undertake the necessary steps to register as an authorized CBAM declarant and fulfil all CBAM obligations. Otherwise, a penalty may be imposed.

Looking ahead, the Commission now aims to speed up its preparation for the CBAM definitive stage. It is expected to prepare a report on CBAM implementation in the second half of 2025, which may include recommendations to extend CBAM to additional sectors or downstream goods. This could lead to a new legislative proposal on an extension of the CBAM scope in early 2026.