The European Parliament has announced that, together with the European Council, it has agreed on the proposed technical changes and simplifications introduced to the EU Carbon Boundary Regulation Mechanism (CBAM).
The changes will lead to the introduction of a new cumulative annual CBAM threshold of 50 tons per importer, exempting 90 percent of importers – mainly small and medium-sized enterprises (SMEs) and individuals importing small quantities of CBAM products – from complying with CBAM regulations, while still covering 99 percent of emissions from iron imports. steel, aluminum and cement. The changes will also simplify the process of authorizing declarants, calculating emissions, and managing CBAM's financial liability, as well as strengthen anti-abuse provisions. These changes are aimed at reducing the administrative burden for small and medium-sized enterprises and casual importers.
"CBAM is designed to prevent carbon leakage and protect the European cement, ferrous metallurgy, aluminum industry, fertilizer production, electricity and hydrogen. We have responded to the calls of companies to simplify and streamline this process and exempt 90 percent of importers of CBAM products from taxes in order to promote competitiveness and growth of our business. As CBAM will continue to cover 99% of total carbon emissions, we maintain the EU's environmental ambitions and remain fully committed to a fair transition and achieving climate neutrality by 2050," said Antonio Decaro, Parliamentary Rapporteur.
However, the changes must be approved by both the Parliament and the Council. They will enter into force three days after publication in the Official Journal of the EU.
Steelorbis.com
