Co author: Sebastian Sievers
On 17 October 2025, the EU published amendments to the CBAM Regulation in the Official Journal, which entered into force on 20 October 2025.
The Carbon Border Adjustment Mechanism (CBAM) is a key element of the European Green Deal and aims to ensure that imported goods are subject to the same CO₂ costs as comparable products produced within the EU. Its goal is to prevent carbon leakage and avoid the relocation of emissions to third countries.
CBAM is currently in a transitional phase, which has been in place since 1 October 2023 and will last until 31 December 2025. During this period, companies must submit quarterly CBAM reports without having to purchase certificates or make payments.
From 1 January 2026, the full operation of CBAM begins: Approved CBAM declarants must submit an annual CBAM declaration by 31 May of the following year and acquire and surrender CBAM certificates corresponding to the embedded emissions of their imported goods.
1. De minimis exemption (Article 2a – NEW)
- 50-tonne threshold: Importers importing less than 50 tonnes/year are exempt from CBAM obligations
- Applies cumulatively to aluminium, cement, fertilisers, iron & steel
- Does NOT apply to electricity and hydrogen
- If exceeded: all emissions for the entire year are relevant
- Annual review by the Commission (99% of emissions must remain covered)
2. Deadlines extended
- CBAM declaration: 30 September (instead of 31 May)
- Sale of certificates: from 1 February 2027
- Repurchase: by 31 October (instead of 30 June)
- Cancellation: 1 November (instead of 1 July)
3. Quarterly requirement reduced
- Only 50% instead of 80% of grey emissions must be covered by allowances per quarter
- Calculation based on standard values without surcharge OR previous year's values
- Obligation only applies from the quarter following the threshold being exceeded
4. CO₂ price deduction simplified
- Standard CO₂ prices: Commission can set annual standard CO₂ prices for third countries
- For standard values for emissions: only standard CO₂ prices are deductible
- For actual emissions: full obligation to provide evidence remains
5. Audit obligation restricted
- Audit only required for actual emissions
- For standard values: no audit necessary
- Auditors must register in the CBAM register (Article 10a - NEW)
6. Indirect customs representatives
- Must always be authorised CBAM declarants
- Liable for the obligations of the importers they represent
- Subject to sanctions in the event of infringements
7. Fees for central platform
- Costs are financed by fees paid by authorised CBAM declarants
- Transitional logins: initially financed from the EU budget
8. Differentiated sanctions
- Possibility of reduction in the event of false information provided by third parties
- Sanction for exceeding the threshold (Article 26(2a))
- Reduction possible for exceedances of max. 10% or under transitional arrangements
- Payment exempts from CBAM declaration and payment obligations
9. Transitional arrangement 2026
- Applications by 31 March 2026: provisional imports possible until decision is made
- Special rule for certificate price in 2026: quarterly instead of weekly average
10. Consultation procedure optional
- Competent authority may (instead of must) consult
- 15 calendar days (instead of working days)
11. Other changes
- Operators may include parent companies
- Third parties may be commissioned to submit CBAM declarations
- Offshore electricity and hydrogen excluded
Challenges in implementing the CBAM
The CBAM will be introduced on 1 January 2026, with September 2027 as the deadline for submitting the annual declaration. The requirement here is that registrants purchase 50% or more of the required certificates per quarter. However, it is not yet possible to purchase certificates; this will be possible from February 2027.
This results in a planning gap during the transition phase, which raises questions for affected companies: Will registrants have to buy certificates retroactively for the quarters of 2026 in 2027, or will the legislator possibly create a transitional arrangement for this purpose?
Conclusion and Outlook
The amendment of the CBAM Regulation significantly simplifies the process, relieves small importers, provides flexibility for larger importers, and ensures that almost all CO₂ emissions are captured under the mechanism.
Looking ahead to the planned Omnibus legal act in 2026, further adjustments to the EU Emissions Trading System (EU ETS) and industrial CO₂ pricing are expected. Companies should closely monitor developments and adapt their compliance and reporting structures early to avoid penalties and liability risks.
Please feel free to contact us if you need support implementing CBAM requirements or integrating them into your ESG and supply chain compliance. Early preparation remains the key to a safe and efficient transition into full CBAM operation.
We would also be pleased to provide you with a comparative overview (synopsis) of the original regulation (2023) and the consolidated version (17 October 2025).
