EU: Amendments to carbon border adjustment mechanism (CBAM) regulation

Key amendments to the carbon border adjustment mechanism regulation

Amendments to the carbon border adjustment mechanism (CBAM) regulation were published in the Official Journal of the EU on October 20, 2025.

Key amendments include:

Exemption threshold introduced: Companies that import less than 50 tons of goods covered by CBAM per year will not be subject to the obligations. According to the European Commission (EC), this measure is expected to exempt approximately 182,000 importers, mostly small and medium enterprises (SMEs) and individuals, whilst still covering over 99% of emissions in scope.
Simplified compliance for importers: The process for reporting emissions, the authorization of declarants, the emissions calculation is simplified.
Financial liability compliance: The steps to comply with financial obligations under CBAM are clarified and changed to reduce regulatory and administrative burdens, particularly benefiting SMEs by lowering compliance costs.
Future provisions for third counties: From 2027, the EC may set and publish standard carbon prices for third countries with carbon pricing rules. The method of calculating these standard prices will also be published in the CBAM register.

Read a November 2025 report prepared by KPMG's EU Tax Centre

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EU: Amendments to carbon border adjustment mechanism (CBAM) regulation

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