On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism.

The European Commission' proposals aims at simplifying the Carbon Border Adjustment Mechanism (CBAM) obligations for small importers—primarily SMEs and individuals—by introducing a new de minimis exemption for imports below 50 tonnes mass. These importers bring in minor volumes of CBAM goods, resulting in negligible levels of embedded emissions entering the EU from third countries. Despite this exemption, approximately 99% of total embedded emissions would remain covered under CBAM, while around 90% of importers would be relieved from its obligations. For those importers who continue to fall within the CBAM scope, the proposal also includes a series of simplifications aimed at easing compliance. These measures involve streamlining the authorisation process for declarants, simplifying emission calculation procedures and improving the management of CBAM-related financial liabilities.

The initiative takes a more pragmatic approach for improving the overall functioning of CBAM, particularly by easing the obligations placed on smaller economic actors. Thus, the proposed exemption marks a necessary and welcome simplification. This, along with the accompanying set of procedural facilitations, represents a step forward in ensuring that the CBAM can be administratively manageable.

Within the Omnibus framework, it is appropriate to concentrate on the elements explicitly opened by the Commission, while awaiting the upcoming comprehensive review, which will provide a more suitable occasion to consider structural and far-reaching revisions, including concerns on the effectiveness of CBAM.

In its current design, CBAM disproportionately affects certain energy-intensive sectors and risks being an ineffective tool to ensure a level playing field for EU industries and to prevent carbon leakage. In fact, it could undermine the EU competitiveness by increasing the production costs and the administrative burdens for EU companies.

The structural revision is therefore urgent to address the risks of resource reshuffling and circumvention. Equally pressing is the postponement (or the deletion) of the phase out from the ETS free allowances, as well as the need to implement effective solutions for EU exporters. Moreover, the possible extension of CBAM to downstream products should be preceded by a thorough and comprehensive impact assessment.

While the ITRE Committee will refrain from tabling amendments to the proposal, the threshold could have merited more in-depth consideration. The de minimis exemption may in fact be too low to reflect meaningfully the reality of many SMEs and micro-enterprises. Data indicates that several businesses, including those officially categorized as "micro," regularly exceed the threshold of 50 tonnes. Hence, a balanced solution could be raising it to at least 110 tons. This adjustment would strike a more realistic and equitable balance, enhancing the administrative feasibility of the CBAM, while continuing to capture the vast majority of emissions within the scope of the Mechanism (according to Commission estimates, still over 98%). The exemption of more importers from CBAM obligations would also generate additional cost savings, without significantly undermining the ratio of the proposal.

In conclusion, waiting for the upcoming comprehensive review, which will provide a timely opportunity to address the outstanding issues, the Rapporteur notes the willingness of the ITRE Committee to not table amendments and supports the Commission’s initiative.

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The Committee on Industry, Research and Energy calls on the Committee on the Environment, Climate and Food Safety, as the committee responsible, to propose that Parliament adopt its position at first reading, taking over the Commission proposal.

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