On 10 September, the European Parliament adopted in plenary its final position on the simplification of the Carbon Border Adjustment Mechanism (CBAM), as part of the so-called “Omnibus I” legislative package. The Council of the European Union followed on 29 September by formally adopting the Regulation, thereby concluding the legislative process. The Regulation will be published in the EU Official Journal in the coming days and will enter into force on the twentieth day following its publication.

This legislative procedure represents an example of a “straightforward” omnibus regulation, in contrast to other proposals under the first Omnibus package, most notably the Sustainable Reporting Directives, which remain under discussion and have sparked heated political debates from the outset. The smooth adoption process may signal the EU’s strategic commitment to creating a level playing field with non-EU countries.

The adopted text largely confirms the changes anticipated during the legislative discussions. Most notably, the former de minimis exemption of €150 per consignment has been replaced with a mass-based threshold of 50 tonnes. It is also confirmed that for 2026 there will be no obligation to purchase CBAM certificates, although CBAM obligations will start that year, alongside reporting requirements. The first reporting will be due by October 2027.

For ease of reference, we set out below a summary of the key amendments to CBAM:

• De minimis exemption: Now set at 50 tonnes/year (mass-based), replacing the former €150/consignment threshold. The new 50-tonne threshold refers to the mass of CBAM goods imported per year and applies per importer (i.e., each legal entity holding its own EORI number). The exemption does not apply to hydrogen and electricity.
• Carbon price deduction: Importers may deduct carbon costs paid in any third country, not solely the country of origin.
• Delegated reporting: CBAM declarants may delegate reporting obligations to an authorised CBAM representative.
• Reporting deadlines: Annual deadline extended from 31 May to 31 October of the following year. This means that importers will first report the emissions embedded in CBAM goods imported during 2026 by 31 October 2027.
• Verification by accredited verifiers (appointed independent auditors): Required only for actual emission values; use of default values does not require verification.
• Default values: Reliance on default values is now expressly permitted “where appropriate”. Previously, default values were considered exceptions that had to be duly justified (for example, due to the impossibility of obtaining actual emissions data) and were subject to quantitative limits on their use. Default values for exporting countries that cannot provide reliable data for a given type of goods will now be based on the average emission intensity of the ten exporting countries with the highest emission intensities for that type of goods, among those with reliable data available.
• Certificate purchase: Start date postponed from January 2026 to February 2027, covering 2026 emissions.
• Certificate coverage ratio: Reduced from ≥80% to 50%, reflecting the continued role of free allowances under the EU ETS. The 50% ratio applies to the emissions embedded in CBAM goods imported since the start of a calendar year, and compliance with this requirement is assessed at the end of each quarter. Under the previous framework, this coverage ratio was 80%. The reduction ensures that importers do not have to purchase an excessive number of CBAM certificates in advance (taking into account that part of the emissions will effectively be accounted for through the adjustment for free allowances granted under the EU ETS to producers based in the EU).
• Repurchases: Deadline for CBAM certificate repurchases moved from June to November, aligning with actual obligations.

With the simplification regulation now finalized, companies should begin preparing for compliance with the new CBAM framework. This includes reviewing internal data collection systems, assessing supply chain emission reporting capabilities, and ensuring readiness for the first reporting cycle in 2027.