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Focus | The exemption of the "Carbon Border Adjustment Mechanism (CBAM)" has been officially passed! In the short term, what impacts will the carbon tariff have on key industries?

2025-05-29

Recently, the EU Environment Committee has adopted a revised proposal for the EU Carbon Border Adjustment Mechanism (CBAM). This means that 90% of goods imported into the EU will be exempt from CBAM rules, a change that will significantly reduce the compliance burden on small and medium-sized enterprises (SMEs) and individuals.Ic socket 8 pinPcb Screw Terminal and reflex reflectors should be noted.

However, despite the significantly expanded exemption scoPE, the EU still maintains regulatory requirements for 99% of carbon dioxide emissions from high-emission industries such as steel, aluminum, cement, and fertilizers.

Context and Drivers

1. Alleviating Pressures on SMEs
During CBAM's implementation, SMEs faced enormous compliance challenges. Due to limited resources, they often struggled to meet complex carbon emission accounting and reporting requirements. The adjustment excludes a large number of goods imported by SMEs and individuals from CBAM coverage by setting minimum quality thresholds, greatly reducing their compliance costs.

2. Enhancing Policy Implementation Efficiency
This simplification is part of the "Omnibus I" package launched in February 2025, aiming to improve CBAM's implementation efficiency. By streamlining rules and reducing unnecessary administrative procedures and costs, the EU seeks to implement carbon pricing policies more effectively and advance global decarbonization. It also lays the foundation for potential future adjustments and optimizations.