The European Commission has given its final green light to changes simplifying the Carbon Border Adjustment Mechanism (CBAM), with 617 votes to 18, and 19 abstentions.
The amended law sets a new de minimis mass threshold whereby imports up to 50 tonnes per importer per year will not be subject to CBAM rules. It replaces the current threshold exempting goods of negligible value. The new threshold exempts 90% of importers − mainly small and medium-sized enterprises and individuals − who import only small quantities of CBAM-covered goods.
However, 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers will still be covered by CBAM.
The Parliament gave its initial approval to the CBAM simplification amendment in May. It was then reviewed for approval by the committee responsible for interinstitutional negotiations. The text now still has to be officially endorsed by the Council.
The amendments will also create safeguards to ensure rules are met and anti-abuse provisions to strengthen prevention of circumvention of the rules, a European Parliament note says.
The rules on imports still covered by CBAM are also simplified, regarding for instance: the authorisation process, the calculation of emissions, verification rules and the financial liability of authorised CBAM declarants, it adds.
Adam Smith Austria
