The Council of the European Union has adopted a revision of the Carbon Border Adjustment Mechanism (CBAM) — the EU’s tool to prevent carbon leakage, also known as the EU carbon border tax.

The update cuts red tape for businesses, particularly SMEs, while keeping climate ambition intact. About 99% of embedded emissions in CBAM goods remain covered.

Key Updates

– 50-tonne threshold – Imports below 50 tonnes per year are exempt from CBAM rules.
– No trade disruption in 2026 – Imports allowed while CBAM registration is pending.
– Simplified compliance – Easier authorisation, emissions calculation, and reporting.
– Clearer rules for representatives – Adjusted provisions for customs and indirect representation.

Next Steps

The regulation will be published in the EU Official Journal in the coming days and enter into force shortly after.

We are closely reviewing the details and will share further updates as they become available.
For specific questions about how the CBAM revision may affect your business, contact us directly.