The European Parliament has overwhelmingly approved reforms to the Carbon Border Adjustment Mechanism (CBAM)—the EU’s import carbon tax—exempting 90% of importers while ensuring over 99% of emissions from high-carbon goods remain covered. The vote (564–20) supports the European Commission’s Omnibus I package, designed to ease regulatory burdens while preserving climate integrity. 

CBAM, effective from 2026, aims to prevent carbon leakage by requiring importers of emissions-intensive goods like steel, aluminum, iron, and cement to purchase carbon certificates, aligning non-EU goods with EU Emissions Trading System (ETS) standards. The mechanism is a pillar of the EU’s ESG and carbon neutral strategy, promoting climate action globally while leveling the playing field for European industries. 

The approved reform introduces a 50-tonne de minimis threshold, exempting mainly small and medium-sized enterprises (SMEs)—about 182,000 importers—from the scope of CBAM, addressing concerns over regulatory overload. Despite this, the measure will continue to cover more than 99% of imported CO₂ emissions, according to the Commission. 

Additional reforms include streamlined emissions calculation, simplified reporting procedures, and broader regulatory clarity for businesses, aligning with the EU’s broader Competitiveness Compass target to reduce reporting burdens by 25–35%, especially for SMEs. 

CBAM rapporteur Antonio Decaro emphasized that the reform strengthens CBAM’s environmental mission without weakening its structure: 

“We simplify matters for companies without dismantling or weakening the CBAM.” 

The vote establishes Parliament’s negotiating stance for talks with the European Council to finalize the legislation. This reform marks a significant step in reconciling economic competitiveness with climate responsibility, reinforcing the EU’s leadership in ESG policy and carbon neutral transformation. 

Source: 

https://www.esgtoday.com/eu-lawmakers-agree-to-exempt-90-of-companies-from-cbam-import-carbon-tax/