REPORT 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 – A10-0085/2025

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

28.4.2025BUDGETARY ASSESSMENT OF THE COMMITTEE ON BUDGETS

for the Committee on the Environment, Climate and Food Safety

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

(COM(2025)0087 – C10‑0035/2025 – 2025/0039(COD))

Rapporteur for budgetary assessment: Sandra Gómez López 

The Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

A. whereas the proposal by the Commission to simplify the Carbon Border Adjustment Mechanism(CBAM) aims at achieving significant savings in terms of administrative costs for EU importers of CBAM goods;

B. whereas the proceeds of the CBAM are to become an EU own resource according to the amended Commission proposal of 23 June 2023 for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union (COM(2023)0331); whereas Parliament approved this proposal in its legislative resolution of 9 November 2023[2];

C. whereas the Council has failed to implement the steps set out in the legally binding roadmap towards the introduction of new own resources laid down in the Interinstitutional Agreement (IIA), the objectives of this roadmap being to introduce sufficient new own resources to at least cover the repayment of NextGenerationEU (NGEU) debt;

D. whereas the estimated revenue from the CBAM would diminish in proportion to the CO2 emissions captured in the scope of the simplified regulation; whereas this impact would remain modest, presumably within one per cent of the overall estimated revenue;

E. whereas the Commission proposal entails additional operational expenditure in Heading 3 to be financed by means of redeployment from a budget line in Heading 4 and administrative expenditure for human resources in Heading 7 to be financed by redeployment within Heading 7;

F. whereas the penalties for CBAM declarants in breach of the regulation are, in principle, to be aligned with excess emission penalties under the Emissions Trading System (ETS); whereas the national competent authorities remain in charge of establishing and enforcing such measures based on implementing acts;

1. Takes note of the proposal to simplify the CBAM regulation in the context of an overall initiative to improve the EU’s competitiveness;

2. Recalls that Parliament has repeatedly endorsed a new own resource based on the CBAM and is keenly aware that this own resource is one of the few candidates that also enjoy tangible support from the Member States in the Council; regrets, therefore, that the embedded emissions covered under the reduced scope of the CBAM would lead to proportionately lower own resources revenue from the CBAM; acknowledges, however, that the amounts (in the order of EUR 20 million per year) and share (1 %) concerned are modest compared to the overall figures that the CBAM is expected to produce in terms of revenue;

3. Confirms that the amending regulation remains compatible with Parliament’s consultative opinion of 9 November 2023, which approves the Commission’s proposal for an amended Council decision on the system of own resources, including a new own resource based on the CBAM;

4. Considers that there are no provisions in the amending regulation that would fall under Rule 58(4), i.e. covering exclusively budgetary aspects which the committee responsible for the subject matter would not be allowed to amend; considers, furthermore, that no legislative amendments in this regard are necessary at this stage;

5. Recalls that the amendments or compromises in the course of the negotiations must not lead to any provisions contradicting Parliament’s established position on the use of CBAM revenue as an own resource; considers it necessary, therefore, to take part in the further negotiations, including the trilogues, in order to monitor the consistency with Parliament’s position on own resources and other pertinent budget-related provisions, and to ensure that the final agreement is compatible with the current MFF;

6. Observes certain flaws and errors in the Legislative Financial and Digital Statement (LFS) that should be rectified in the course of the further process, in a revised version of the Statement; questions, in this respect, the annual amounts listed in the table under Section 3.3 and, in particular, whether there will already be any revenue collected in 2026; also considers that the budget line (which is from the expenditure title) mentioned in this section is incorrect; recalls that in order to be consistent with present practice and the proposed own resources legislation, amounts indicated in this section should be shown ‘net’ of the 25 % collection costs to be retained by Member States and converted into current prices;

7. Acknowledges that the level of revenue foregone, in the order of EUR 21 million as of 2030, is non-material compared to the cost savings for companies, especially SMEs, and acceptable in view of the overall revenue expected from the CBAM;

8. Takes note of the necessary additional operational and administrative appropriations as indicated in the LFS; reiterates its long-standing position that new tasks and responsibilities should, in principle, be financed by fresh resources; deplores the limited margins available in the MFF and acknowledges that they could justify a certain level of reallocation; warns that the additional operational amounts will use a sizeable share of the remaining margin under Heading 3; also recognises that the redeployment from the instrument for financial support for customs control equipment (CCEI) implies the creation of some additional margin in Heading 4; determines that the amounts mentioned under points 3.2.1, 3.2.3 and 3.2.6 in the LFS are compatible with the MFF ceilings in Headings 3, 4 and 7, but will require adjustments in the financial programming; questions, nonetheless, whether such redeployment operations are in line with the ring-fencing logic of the MFF headings;

9. Questions why a reduction of the scope, by an alleged 90 %, of companies to be registered as authorised CBAM declarants does not lead to a lower level of administrative needs under Heading 7;

10. Acknowledges that any substantive changes in the governance of the implementation and enforcement of the CBAM, such as those related to the penalties for non-compliance, would be beyond the scope of this simplification initiative; considers, however, in light of the planned revision of the CBAM regulation, that the proceeds of the penalties could eventually be considered as general revenue for the EU budget;

11. Notes that the simplification initiative is also presented as a key enabler for a potential future extension of the scope of the CBAM; expects that such an extension would have significant budgetary implications, including for revenue flows;

12. Recalls that the Union’s budget is under strain and stresses the need for additional sustainable and resilient revenue; points to the legally binding roadmap towards the introduction of new own resources laid down in the IIA, in which Parliament, the Council and the Commission undertook to introduce sufficient new own resources to at least cover the repayment of NGEU debt; recalls its support for the amended Commission proposal on the system of own resources; is deeply concerned by the complete absence of progress on the system of own resources in the Council; calls on the Council to adopt this proposal as a matter of urgency and urges the Commission to spare no effort in supporting the adoption process; calls, furthermore, on the Commission to continue efforts to identify additional genuine new own resources beyond those specified in the IIA.

As part of its budgetary assessment, the Committee on Budgets also submits the following amendments to the proposal:

Amendment  1

Proposal for a regulation

Recital [10] a (new)

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR FOR BUDGETARY ASSESSMENT HAS RECEIVED INPUT

The rapporteur for budgetary assessment declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR BUDGETARY ASSESSMENT

FINAL VOTE BY ROLL CALL
IN COMMITTEE ASKED FOR BUDGETARY ASSESSMENT

Key to symbols:

+ : in favour

– : against

0 : abstention

OPINION OF THE COMMITTEE ON INTERNATIONAL TRADE (24.4.2025)

for the Committee on the Environment, Climate and Food Safety

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

(COM(2025)0087 – C10‑0035/2025 – 2025/0039(COD))

Rapporteur for opinion: Karin Karlsbro

The Committee on International Trade 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.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for opinion declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL
BY THE COMMITTEE ASKED FOR OPINION

Key to symbols:

+ : in favour

– : against

0 : abstention

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY (23.4.2025)

for the Committee on the Environment, Climate and Food Safety

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.

(COM(2025)0087 – C10‑0035/2025 – 2025/0039(COD))

Rapporteur for opinion: Filip Turek

(Simplified procedure – Rule 52(2) and (3) of the Rules of Procedure)

SHORT JUSTIFICATION

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.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR FOR THE OPINION HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the concerned natural persons the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL
BY THE COMMITTEE ASKED FOR OPINION

Key to symbols:

+ : in favour

– : against

0 : abstention

PROCEDURE – COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

Key to symbols:

+ : in favour

– : against

0 : abstention