Policy
The Carbon Border Adjustment Mechanism (CBAM)
Francesca Ventimiglia•Aug 11, 2025
2 minutes
The EU's Carbon Border Adjustment Mechanism (CBAM) is entering a new phase. While importers navigate the current reporting requirements, Brussels is already rewriting the script with significant simplifications.
Where we are now
Since October 2023, importers have been required to report carbon emissions for six sectors: aluminium, cement, electricity, fertilisers, hydrogen, and iron & steel. There are no payments required yet—the focus remains on data collection through December 2025.
The February 2025 Omnibus changes
- New 50-tonne mass threshold per importer per year.
- Exempts ~90% of importers while still covering 99% of emissions.
- Certificate purchases delayed from January 2026 to February 2027.
- Simplified compliance procedures for small importers.
Key 2025 dates
- May: Parliament adopts position, Council agrees approach.
- June: Provisional agreement reached.
- August 26, 2025: Future expansion consultation ends.
- Late 2025: Final adoption expected.
For importers
Use the transition period wisely to understand your carbon footprint and prepare systems. The reporting you do now is practice for what becomes mandatory in 2027.