EU Council Adopts New Rules to Simplify Carbon Border Tax (CBAM)

On September 29, 2025, the EU Council adopted a new regulation to simplify and strengthen the Carbon Border Adjustment Mechanism (CBAM), commonly referred to as the EU’s carbon border tax. Part of the "Omnibus I" legislative package, the changes are designed to reduce the administrative and financial burden on companies, especially small and medium-sized enterprises (SMEs), while maintaining the EU's climate ambitions.

The updated regulation introduces a new "de minimis" mass threshold, exempting imports of up to 50 tonnes per importer per year from CBAM rules. It also allows for the import of CBAM-covered goods under certain conditions while an importer's registration is pending, preventing disruptions at the start of 2026.

What this means for business

The simplification measures are a direct response to calls to reduce red tape. For businesses, particularly smaller importers, the new 50-tonne threshold will significantly ease the compliance burden. The regulation also streamlines authorization procedures, data collection, and emissions calculations for all declarants, making the process more cost-efficient.

Source: Council Press Release