The package of proposals, called Omnibus, aims to simplify regulations in areas such as sustainable finance reporting, sustainability due diligence, the EU Taxonomy, the Carbon Border Adjustment Mechanism (CBAM) and European investment programs. The Commission announced plans to create a more welcoming business environment across the EU by reducing administrative burdens by at least 25% and by at least 35% for SMEs.
The EU Commission announced significant exemptions for small importers, SMEs and individuals under the Carbon Border Adjustment Mechanism (CBAM). Small importers, mostly SMEs and individuals, are proposed to be excluded from CBAM obligations. The new regulation will introduce a cumulative annual CBAM threshold of 50 tons per importer. This threshold would eliminate the CBAM obligations of around 182,000 importers, or 90% of importers, but the new regulation would continue to cover more than 99% of covered emissions.
Simplification of reporting and calculation processes for large companies within the scope of CBAM has been announced. With this regulation, it was announced that the authorization of CBAM declarants, calculation of embedded emissions and notification obligations will be facilitated. In addition, the rules will be strengthened to make the system more resistant to cheating.
Changes will come into force ahead of the new legislative proposal to extend CBAM to other ETS sectors and downstream products in early 2026.
The EU Commission stated that these reforms will make life easier for businesses while accelerating the achievement of the European Green Deal and decarbonization targets. The legislative proposals will be submitted to the European Parliament and the Council and will enter into force if adopted. If the proposals are accepted, it is expected that EUR 6.3 billion in annual savings will be achieved and EUR 50 billion worth of additional investments will be mobilized.
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