Parliament Backs Simplification of EU Carbon Leakage Instrument

The European Parliament has shown its support for proposals to streamline the EU carbon leakage instrument, aiming to reduce administrative burdens for small and medium-sized enterprises (SMEs) and occasional importers. The new de minimis mass threshold of 50 tonnes, if implemented, would exempt 90% of importers from the EU carbon border adjustment mechanism (CBAM) rules, while still covering 99% of CO2 emissions from certain imports.
During a plenary session, MEPs endorsed the Commission’s proposal as part of the “Omnibus I” simplification package presented in February 2025. The changes are intended to simplify the authorization process for importers subject to CBAM regulations, streamline emission calculations, and enhance anti-abuse provisions.
Rapporteur Antonio Decaro emphasized the importance of the CBAM in preventing carbon leakage and promoting climate action globally. With 564 votes in favor, 20 against, and 12 abstentions, Parliament is now set to enter negotiations with the Council to finalize the legislation.
The EU’s carbon border adjustment mechanism aims to harmonize carbon pricing between EU products and imports, encouraging climate ambition worldwide. The Commission is set to review the possibility of expanding the CBAM to additional sectors at risk of carbon leakage in early 2026.