The European Commission (EC) is confirmed to have adopted the proposed changes to its Carbon Border Adjustment Mechanism (CBAM) that were widely circulated in a leaked draft amendment earlier this week.
The main changes, reported by Kallanish, were confirmed to part of the Omnibus simplification package during an EC press conference on Wednesday.
A published EC Omnibus package document confirms the proposed later date at which certificates are required to be purchased, and the threshold of exemption for those importing less than 50 tonnes/year of products under the CBAM scope. This threshold corresponds to approximately 80 t/y of CO2 equivalent on average per importer, just below the 100t of CO2 reported recently.
Given they account for 69% of overall tonnages reported across the targeted sectors during CBAM’s first year, it is unlikely steel importers would benefit from the minimal threshold exemption due to larger volumes.
While CBAM will still come into force in January 2026, the requirement to purchase certificates will be delayed and payment will be simplified. Certificates will now need to be purchased from February 2027 to cover the previous year, removing the obligation to purchase certifications on a quarterly basis for the first year, according to the proposals.
“This does not mean a postponement of CBAM in 2026, but flexibility to be able to comply with obligations,” Vincente Hurtado Roa, head of unit at the European Commission, says in an online post.
Dan Maleski, lead CBAM advisor at Redshaw Advisors, notes that this means importers will no longer be required to purchase and deposit CBAM certificates quarterly in 2026. Instead, the first purchases have been postponed until 2027. However, the financial obligation remains unchanged and importers must still surrender CBAM certificates in 2027 for emissions embedded in 2026 imports.
“While CBAM certificate purchases are deferred, financial risk is not. The obligation to account for embedded emissions begins on 1 January 2026,” he adds.
Maleski notes carbon markets are inherently volatile and companies that secure costs for other inputs such as iron ore and coke but leave carbon costs exposed risk significant margin erosion if prices rise.
“For those importers that remain in the CBAM scope, the proposed changes will facilitate compliance with the reporting requirements and aim at simplifying the authorisation of declarants, the calculation of emissions, reporting requirements and compliance with the financial liability,” the EC document says.
“They aim to spare 90% of concerned companies from reporting requirements, while still covering 99% of the CO2 emissions,” it adds.
Kallanish is hosting a CBAM workshop with expert advisers on 9 April in Ho Chi Minh City. If you are interested in participating, please contact us at hollie.docwra@kallanish.com
Carrie Bone UK
