CBAM’s implementation could be pushed back to 2027 by the EU. (Photo: iStock)
Updated: European Parliament supports CBAM amendments
On May 22, the European Parliament voted in favor of proposed amendments to the Carbon Border Adjustment Mechanism (CBAM), originally introduced by the European Commission in February. The revised draft lowers the carbon tariff exemption threshold to 50 tonnes and exempts approximately 90% of companies, around 180,000 firms, from CBAM obligations, while still covering 99% of total reported emissions. The implementation of carbon tariffs has also been postponed for one year.
The proposal passed with 564 votes in favor, 20 against, and 12 abstentions. Antonio Decaro, Member of the European Parliament and rapporteur for the proposal, welcomed the decision, saying it eases the burden on businesses without undermining CBAM’s overall impact.
The draft legislation also confirms that CBAM certificates, required for offsetting carbon emissions, will go on sale starting February 1, 2027, granting companies additional time to adjust and prepare. Following the European Parliament’s approval, EU member states will now take positions on the amendments before entering negotiations on the final legal details.
