CBAM – latest regulatory changes

Key Changes in CBAM

1. Delay in CBAM certificate sales

The obligation to purchase CBAM certificates will be postponed from 2026 to 2027, giving importers additional time to prepare. However, it is important to note that costs related to embedded emissions in imported goods in 2026 will still apply—they will only be incurred in 2027 (Art. 1(14)).

2. New exemption threshold for small importers

Companies importing less than 50 tons of covered goods annually will be exempt from CBAM obligations. As a result, 90% of importers will be excluded from the system, while still covering 99% of emissions. The de-minimis exemption threshold proposed by the European Commission is not fixed.

Every year, by the end of July, the Commission will review this value based on a formula specified in the regulation, ensuring that CBAM reports cover over 99% of embedded emissions in goods imported into the EU. The Commission will also have the ability to set individual thresholds for specific CBAM product categories through delegated acts.

3. Stricter penalties for intentional violations

Minor infractions will result in lower fines, but deliberate attempts to circumvent regulations, such as splitting imports into smaller shipments, will be penalized with fines three to five times higher than before.

The European Commission has proposed significant simplifications in determining embedded emissions values. Under the proposed revision, embedded emissions can be calculated based on scientific literature data or, in the absence of other information, default values. The use of default values in reports was permitted for importers until 31 July 2024. In practice, default values significantly exceed actual emissions values, incentivizing importers to obtain real data on embedded emissions.

According to the draft regulation:

"If actual emissions cannot be adequately determined by the authorized CBAM declarant, default values shall be used. These values shall be set at the level of the average emission intensity of each exporting country and for each of the goods listed in Annex I, excluding electricity, with an appropriate markup. The markup will be determined in implementing acts adopted in accordance with Article 7(7) and set at an appropriate level to ensure the environmental integrity of CBAM, based on the most up-to-date and reliable information, including data collected during the transition period. If reliable data for the exporting country cannot be applied to a given type of goods, default values will be based on the highest emission intensity of those exporting countries for which reliable data is available for that type of goods.”

Other important changes

Compliance simplifications

• The requirement to maintain quarterly CBAM certificates has been reduced to 50% of embedded emissions in a given quarter, potentially lowering financial burdens for importers
• CBAM declarations will be submitted in October instead of May, allowing more time for preparation
• Importers will be able to deduct emission charges paid by supply chain participants outside the country of origin of imported products from the value of CBAM certificates
• Importers will be able to authorize other entities to perform CBAM-related obligations on their behalf. However, such authorization will not remove the importer’s liability for CBAM obligations. This authorization will be similar to direct customs representation
• The value of CBAM certificates to be purchased for the first time in 2027 will be calculated based on the average price of EU ETS allowances in 2026

See also: ESG – OMNIBUS Simplification Package

CBAM scope adjustments

Certain products will be excluded from the CBAM system (Annex I).

The regulation introduces an anti-abuse clause, ensuring that artificial actions aimed at circumventing CBAM obligations, such as splitting shipments into smaller parts, will be particularly sanctioned.

Link to the legislative proposal

Changes in EU environmental regulations

The European Union also plans significant changes regarding sustainability reporting and supply chain due diligence. The new regulations may considerably reduce obligations for many companies:

• Changes in the Corporate Sustainability Reporting Directive (CSRD) – Only the largest companies (with over 1,000 employees and €450 million in revenue) will be required to report, instead of the previous threshold of 50 employees and €8 million in revenue.
• Limiting the scope of due diligence (CSDDD) – Companies will only be required to monitor direct suppliers, not entire supply chains.
• Reduced frequency of supplier audits – Instead of annual audits, companies will be required to monitor suppliers once every five years.
• No obligation to terminate cooperation with non-compliant suppliers – Companies will no longer be required to automatically end cooperation with partners violating environmental and human rights standards.
• Revised penalty system – Member states will no longer have to set fines based on company revenue.

These changes are controversial and may face resistance in the European Parliament, especially from green and left-wing groups concerned about weakening environmental and human rights protections.

CBAM – How can we help?

The changes in CBAM and EU environmental regulations create an increasing need to monitor legislation and adjust business strategies. We offer support in:

• Analyzing the impact of CBAM and environmental regulations on business operations
• Developing compliance strategies
• Optimizing emissions reporting and certificate management
• Minimizing the risk of penalties and non-compliance
• Supporting supply chain due diligence

Check our service:
CBAM Reporting

Contact us to learn more about how to effectively manage risks related to CBAM and new environmental regulations.