EU revises CBAM with 50-tonne threshold exempting 90% of importers

The European Parliament's Environment Committee approved CBAM revisions introducing a 50-tonne annual import threshold that exempts roughly 90% of importers while retaining oversight of 99% of covered emissions. Indian exporters of steel, aluminium, cement, and fertilisers to the EU must maintain emissions tracking ahead of full CBAM enforcement in 2026.

The European Parliament's Environment Committee approved CBAM revisions under the European Commission's "Omnibus I" simplification package introduced in February 2025. The centrepiece is a 50-tonne annual import threshold exempting approximately 90% of importers, largely SMEs and occasional importers, from reporting embedded greenhouse gas emissions. Despite the exemption, goods accounting for 99% of CO2 emissions under the scheme remain subject to full reporting and pricing, preserving the mechanism's role in preventing carbon leakage.

Importers of steel, aluminium, cement, and fertilisers into the EU are directly affected, with SMEs and low-volume importers gaining procedural relief. The revisions simplify the authorisation process for CBAM declarants, clarify emissions calculation methodologies, and strengthen anti-abuse measures, improving compliance ease and regulatory predictability. CBAM complements the EU Emissions Trading System by extending carbon pricing to imported high-emission products, so major importers retain full obligations despite the SME reprieve.

Major importers should double down on emissions tracking, carbon-cost planning, and regulatory alignment ahead of full CBAM enforcement in 2026, when exemptions for low-volume importers will not relieve high-emission goods. The Commission will evaluate by early 2026 whether additional carbon-leakage-prone sectors should be added. Indian exporters in steel, aluminium, cement, and fertilisers should confirm whether they fall above the 50-tonne threshold and prepare embedded-emissions data for EU buyers.

Key figure — Import threshold: 50 tonnes annually, exempting roughly 90% of importers