EU Council, Parliament Strike Deal on CBAM Exemption for Most Importers
Negotiators from the Council of the European Union's presidency and the European Parliament struck a provisional deal June 18 to exempt most importers from the bloc's carbon border adjustment mechanism, the council announced.
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The agreement comes after Parliament in May endorsed a European Commission proposal to exempt 90% of EU importers from the carbon border tax (see 2505230008). The deal retains "key components" from that proposal, such as an exemption that excludes small and medium-sized companies that import small quantities of goods covered by the carbon border adjustment mechanism -- less than 50 metric tons of those goods per year.
The proposal also will help "avoid any disruptions for importers in the beginning of 2026," allowing them to continue importing CBAM goods while awaiting registration, the council said.
The agreement also includes other "simplification measures" for all importers of CBAM goods, including "data collection processes, the calculation of embedded emissions, the emission verification rules, the calculation of the CBAM declarants’ financial liability during the year of imports, and the claim by CBAM declarants for carbon prices paid in third countries where goods are produced."