The Council of the European Union has formally adopted the Omnibus I regulation, introducing key simplifications to the EU’s Carbon Border Adjustment Mechanism (CBAM). Among the most notable changes is the introduction of a de minimis threshold of 50 tons per year per importer, exempting small-volume importers from CBAM reporting and compliance obligations.

EU lawmakers emphasized that this adjustment will ease the administrative burden on smaller operators without undermining the mechanism’s climate objectives. According to Council estimates, around 99% of embedded emissions from imports will remain covered under CBAM rules despite the new exemption.

The adopted package also streamlines:
• Authorization procedures for importers;
• Emission calculation and verification methods;
• Financial liability provisions for declarants;
• Recognition of carbon prices paid in third countries.

Publication in the Official Journal of the EU is expected within days, with the regulation entering into force shortly thereafter.

Industry Concerns Persist

While industry groups broadly welcomed the simplifications, concerns remain. EUROMETAL, representing the European steel distribution and trade sector, has urged the European Commission to publish secondary legislation and clarifications before the end of 2025, warning that uncertainty over calculation methodologies and recognition of foreign carbon costs could disrupt trade flows when the permanent CBAM phase begins in 2026.

What Comes Next

The European Commission is preparing further guidance to ensure smooth implementation, including detailed rules on embedded emission reporting and crediting of carbon costs abroad. Industry stakeholders continue to monitor the regulatory rollout closely, given its direct impact on competitiveness and supply chains in sectors such as steel, aluminum, and cement.