EU Plans Major Changes to CBAM: Exemptions Expanded and Certificate Sales Delayed to 2027

EU: CBAM

New Draft Legislation to Exempt Most Importers and Simplify Carbon Reporting

The European Union is set to expand exemptions and delay certificate sales under its Carbon Border Adjustment Mechanism (CBAM), according to a leaked draft of upcoming legislation reviewed by The Metalnomist. The CBAM, designed to place a carbon price on imports, will fully launch next year, but importers will not be able to purchase certificates until February 2027. This delay aims to address significant uncertainties related to the year 2026.

Mass-Based Threshold Will Exempt Vast Majority of Importers

The draft introduces a mass-based threshold, which is expected to exempt more than 99% of embedded emissions in imports to the EU. Importers whose goods do not exceed 50 tonnes of net mass annually will be exempt from the CBAM. This measure is designed to reduce the administrative burden and will primarily affect large-scale importers, while protecting smaller businesses from complex compliance.

Additional Key Changes Streamline Compliance

Under the draft, the number of CBAM certificates importers must hold at the end of each quarter will be reduced from 80% to 50% of their emissions obligations since the start of the year. Moreover, importers will now be able to sell back all the certificates required to fulfill their annual obligations, instead of only one-third as previously planned. The legislation also allows companies to claim carbon prices paid in countries other than the country of origin, and makes it easier to calculate emissions embedded in downstream aluminium and steel products. Non-calcined kaolinic clays will be excluded, and electricity will be newly added as a direct emissions good.

These changes aim to make the CBAM more efficient and manageable, while maintaining its core environmental objectives. EU climate commissioner Wopke Hoekstra has also expressed support for revising the mechanism’s scope to reduce administrative challenges for businesses.