Regulation (EU) 2025/2083

What it is

PURPOSE: to simplify certain obligations and strengthen the carbon border adjustment mechanism (CBAM) that the Union has adopted to prevent the risk of carbon leakage and thereby reduce global carbon emissions. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: concerns have been raised by various companies and stakeholders about the administrative burden resulting from a number of EU acts, such as the Carbon Border Adjustment Mechanism (CBAM Regulation). Following up on the Draghi report on the future of European competitiveness, the Commission confirmed in its Communication ‘A Compass for EU Competitiveness’ that it would propose a first ‘ omnibus package on simplification ’ that would include far-reaching simplification in the areas of sustainability disclosures in the financial services sector, sustainability due diligence and taxonomy. In its February 2025 Communication ‘A Simpler, Faster Europe’, the Commission set out the vision for an implementation and simplification agenda that delivers rapid and visible improvements for citizens and businesses on the ground. The European Parliament adopted by 564 votes to 20, with 12 abstentions, amendments to 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 matter was referred to the relevant committee for interinstitutional negotiations. The proposed amendment is part of the first omnibus package aimed at eliminating regulations that are disproportionate to the sustainable transition. It aims to reduce the compliance burden on importers of goods covered by the Carbon Border Adjustment Mechanism (CBAM) and improve the functioning of the CBAM. Parliament supported the introduction of a new threshold of 50 tonnes, which will exempt the vast majority of importers - mainly small and medium-sized enterprises and individuals - who only import small quantities of goods covered by the CBAM. With these amendments, Parliament clarified that the CBAM applies to importation of electricity, but it should not apply to electricity generated entirely in the exclusive economic zone of an EEA Member State and imported directly into the customs territory of the Union. Text adopted by Parliament, partial vote at 1st reading/single reading The European Parliament adopted by 617 votes to 18, with 19 abstentions, a legislative resolution 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 (CBAM). The proposal aims to simplify certain obligations and strengthen the mechanism adopted by the Union to prevent the risk of carbon leakage and thereby reduce global carbon emissions. These amendments are part of the Omnibus I simplification package presented on 26 February 2025, which aims to simplify existing legislation in the areas of sustainability and…

Official title: Regulation (EU) 2025/2083 of the European Parliament and of the Council of 8 October 2025 amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism (Text with EEA relevance)