Clifford Chance

The EU Omnibus Package – Streamlining the EU Carbon Border Adjustment Mechanism

3 March 2025

A proposal for reform of the EU’s Carbon Border Adjustment Mechanism (CBAM) has been included as part of the European Commission’s Omnibus 1 package of sustainability legislation reforms. While many criticisms of the CBAM have been levelled at its impact on developing countries, these proposals primarily aim at reducing the complexity of CBAM obligations that heavily impact small companies, offering exemptions for importers of small quantities and streamlining compliance for others. Other proposals have been made to simplify some of the administrative aspects of the regime, and also reflect the fact that these changes have been proposed not long before the full regime comes into effect in 2026.

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