Carbon Border Adjustment Mechanism: simplification and strengthening

Amendments tabled for the plenary sitting on this text, in their own numbering series. This is a different set from the committee amendments tracked elsewhere on AmendEU, and is not counted in any of the site’s amendment totals.

1. Amendment 1Proposal for a regulation · Recital 25 a (new)
   Amendment

   (25a) 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 ;

   official amendment document ↗
2. Amendment 2Proposal for a regulation · Article 1 – paragraph 1 – point 1 – point b a (new) · Regulation (EU) 2023/956 · Article 2 – paragraph 3 b (new)
   Amendment

   (ba) the following paragraph 3b is inserted: 3b. By way of derogation from paragraphs 1 and 2, this Regulation shall 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.

   official amendment document ↗
3. Amendment 3Proposal for a regulation · Annex I – paragraph 1 – point 1 a (new) · Regulation (EU) 2023/956 · Annex IV – point 3 – paragraph 1 – subparagraph 5
   Current text

   EEInpMat are the embedded emissions of the input materials (precursors) consumed in the production process. Only input materials (precursors) listed as relevant to the system boundaries of the production process as specified in the implementing act adopted pursuant to Article 7(7) are to be considered. The relevant EEInpMat are calculated as follows:

   Amendment

   (1a) In point 3, in the notes explaining the formula for SEEg in the first paragraph, the note for EEInpMat is replaced by the following: EEInpMat are the embedded emissions of the input materials (precursors) consumed in the production process. Only input materials (precursors) listed in Annex I and originating in third countries and territories that are not exempted pursuant to Annex III, Point 1 are to be considered. The relevant EEInpMat are calculated as follows:

   official amendment document ↗
4. Amendment 4ECRProposal for a regulation · Article 1 – paragraph 1 – point 4 – point a
   Current text

   1. By 31 August of each year, and for the first time in 2027 for the year 2026, each authorised CBAM declarant shall use the CBAM registry referred to in Article 14 to submit a CBAM declaration for the preceding calendar year.

   Amendment

   1. By 30 September of each year, and for the first time in 2027 for the year 2026, each authorised CBAM declarant shall use the CBAM registry referred to in Article 14 to submit a CBAM declaration for the preceding calendar year.

   official amendment document ↗
5. Amendment 5ECRProposal for a regulation · Article 1 – paragraph 1 – point 16 – point a
   Current text

   By 31 August of each year, and for the first time in 2027 for the year 2026, the authorised CBAM declarant shall surrender via the CBAM registry a number of CBAM certificates that corresponds to the embedded emissions declared in accordance with Article 6(2), point (c), and verified in accordance with Article 8, for the calendar year preceding the surrender.;

   Amendment

   By 30 September of each year, and for the first time in 2027 for the year 2026, the authorised CBAM declarant shall surrender via the CBAM registry a number of CBAM certificates that corresponds to the embedded emissions declared in accordance with Article 6(2), point (c), and verified in accordance with Article 8, for the calendar year preceding the surrender.;

   official amendment document ↗
6. Amendment 6ECRProposal for a regulation · Article 1 – paragraph 1 – point 16 – point b
   Current text

   2. From the first quarter of the year 2027, the authorised CBAM declarant shall ensure that the number of CBAM certificates on its account in the CBAM registry at the end of each quarter corresponds to at least 50 % of the embedded emissions in all goods it has imported since the beginning of the calendar year, taking into account the adjustment for free allocation as referred to in Article 31, determined by reference to any of the following:

   Amendment

   2. From 2027, the authorised CBAM declarant shall ensure that the number of CBAM certificates on its account in the CBAM registry at the end of each quarter corresponds to at least 50 % of the embedded emissions in all goods it has imported since the beginning of the calendar year, taking into account the adjustment for free allocation as referred to in Article 31, determined by reference to any of the following:

   official amendment document ↗
7. Amendment 7ECRProposal for a regulation · Article 1 – paragraph 1 – point 21 – point a
   Current text

   (a) the following paragraph 1a is inserted: ‘1a. The competent authority may decrease the amount of the penalty calculated in accordance with paragraph 1, considering one or more of the following factors: a) the extent of unreported information; b) the level of cooperation and readiness of the authorised CBAM declarant to comply with requests for information; c) the unintentional nature of the behaviour of the authorised CBAM declarant; d) the past compliance of the authorised CBAM declarant.;’

   Amendment

   deleted

   official amendment document ↗
8. Amendment 8ECRProposal for a regulation · Annex I – paragraph 1 – point 2 – point a
   Current text

   When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the ten exporting countries with the highest emission intensities for which reliable data can be applied for that type of goods.;

   Amendment

   When reliable data for the exporting country cannot be applied to a type of commodity, the default values will be based on the average emission intensity of the 10% of exporting countries with the highest emission intensities for which reliable data are available for that type of commodity; if the number of exporting countries for which reliable data are available is more than 30, the default values will be based on the average emission intensity of the three countries with the highest emission intensities for which reliable data are available.;

   official amendment document ↗
9. Amendment 9ECRProposal for a regulation · Recital 29 a (new)
   Amendment

   (29 a) It is necessary to ensure effective implementation of the Carbon Border Adjustment Mechanism (CBAM) and to address the remaining regulatory loopholes, which result in circumvention of the established rules and, in consequence, put European production at risk of competitive disadvantage. It is therefore necessary to address the regulatory loopholes, through strict oversight and monitoring of CBAM application, in order to ensure a level playing field between European producers of CBAM goods and third country producers and effectively reduce global emissions.

   official amendment document ↗
10. Amendment 10ECRProposal for a regulation · Article 1 – paragraph 1 – point 16 – point b
    Current text

    (b) the number of CBAM certificates surrendered in accordance with paragraph 1 for the calendar year preceding the surrender, provided that the customs declaration for the import of goods refers to the same goods by CN code and countries of origin as the CBAM declaration submitted for the preceding calendar year.;

    Amendment

    (b) the number of CBAM certificates surrendered in accordance with paragraph 1 for the calendar year preceding the surrender, provided that the customs declaration for the import of goods refers to the same goods by CN code, same third country operator and countries of origin as the CBAM declaration submitted for the preceding calendar year, provided that the third country operators are registered in the CBAM registry in accordance with Article 10.;

    official amendment document ↗
11. Amendment 11ECRProposal for a regulation · Article 1 – paragraph 1 – point 21 – point a
    Current text

    (a) the following paragraph 1a is inserted: ‘1a. The competent authority may decrease the amount of the penalty calculated in accordance with paragraph 1, considering one or more of the following factors: a) the extent of unreported information; b) the level of cooperation and readiness of the authorised CBAM declarant to comply with requests for information; c) the unintentional nature of the behaviour of the authorised CBAM declarant; d) the past compliance of the authorised CBAM declarant.;’

    Amendment

    deleted

    official amendment document ↗
12. Amendment 12ECRProposal for a regulation · Annex I – paragraph 1 – point 2 – point a
    Current text

    When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the ten exporting countries with the highest emission intensities for which reliable data can be applied for that type of goods.;

    Amendment

    When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the 10% of exporting countries with the highest emission intensities for which reliable data can be applied for that type of goods.; if the number of exporting countries for which reliable data are available is higher than 30, the default values shall be based on the average emission intensity of the three countries with the highest emissions intensities for which reliable data are available’;

    official amendment document ↗
13. Amendment 13ECRProposal for a regulation · Recital 27 a (new)
    Amendment

    (27 a) Coking coal is a critical raw material of strategic importance for European industry, which underpins the green and digital transition. Listed under Regulation (EU) 2024/1252 of the European Parliament and of the Council1a, coking coal is of a strategic importance for the overall Union economy, and therefore its internal European production should be promoted. Imports of coking coal from third countries with less stringent environmental legislation in place negatively impact the European domestic production of coking coal and places European producers at a competitive disadvantage and risks undermining Union's climate and industrial objectives. In order to ensure the level playing fie…

    Excerpt — full text in the official PDF.
    official amendment document ↗
14. Amendment 14ECRProposal for a regulation · Recital 27 b (new)
    Amendment

    (27 b) Soda ash is a fundamental chemical compound that is used in a wide range of industrial processes, including the manufacturing of glass, chemicals, detergents and metallurgical operations. The production of soda ash is highly energy-intensive and, within the Union, is subject to stringent climate and energy legislation, notably the obligations under Directive 2003/87/EC of the European Parliament and of the Council1a. Soda ash is imported from third countries with less stringent climate and energy legislation and significantly lower energy prices, which places Union producers of soda ash at a competitive disadvantage and risks encouraging carbon leakage. Therefore, the Commission shoul…

    Excerpt — full text in the official PDF.
    official amendment document ↗
15. Amendment 15ECRProposal for a regulation · Article 1 – paragraph 1 – point 23 a (new)
    Amendment

    (23 a) in Article 30, paragraph 2 is amended as follows: (a) the first subparagraph is replaced by the following: 'Before the end of the transitional period referred to in Article 32, the Commission shall present a report to the European Parliament and to the Council on the application of this Regulation. The report shall be accompagnied by a legislative proposal.' (b) the second subparagraph, point (a)(iii), is replaced by the following: '(iii) goods at risk of carbon leakage other than those listed in Annex I, and specifically organic chemicals, polymers, soda ash and coking coal';

    official amendment document ↗
16. Amendment 16PfEProposal for a regulation · Recital 1
    Current text

    (1) During the transitional period, which started on 1 October 2023, the Commission has been collecting data and information on the implementation of the Carbon Border Adjustment Mechanism (‘CBAM’) as provided for in Regulation (EU) 2023/956 of the European Parliament and of the Council3 , including through the analysis of quarterly reports submitted by reporting declarants. The information collected and the exchanges with the stakeholders, including as part of the expert group on the CBAM, have outlined possibilities for simplifications and improvement of the CBAM. The Union is committed to ensure a smooth roll-out of the CBAM during the post-transitional period starting on 1 January 2026.…

    Amendment

    (1) During the transitional period, which started on 1 October 2023, the Commission has been collecting data and information on the implementation of the Carbon Border Adjustment Mechanism (‘CBAM’) as provided for in Regulation (EU) 2023/956 of the European Parliament and of the Council3 , including through the analysis of quarterly reports submitted by reporting declarants. The information collected and the exchanges with the stakeholders, including as part of the expert group on the CBAM, have outlined possibilities for simplifications and improvement of the CBAM. The Union is committed to ensure a smooth roll-out of the CBAM during the post-transitional period that will start when the leg…

    Excerpt — full text in the official PDF.
    official amendment document ↗
17. Amendment 17PfEProposal for a regulation · Recital 1 a (new)
    Amendment

    (1 a) Union industries exporting goods that fall within the scope of the CBAM are not compensated for the high and constantly increasing costs incurred by the EU ETS or protected from possible retaliatory measures imposed by trading partners. In the context of the comprehensive review, the Commission will introduce an export adjustment mechanism, address the issue of circumventing measures, and guarantee that CBAM exporters are protected from third countries' retaliatory measures.

    official amendment document ↗
18. Amendment 18PfEProposal for a regulation · Recital 1 b (new)
    Amendment

    (1 b) The Union is the only major region in the world to have introduced a significant price on CO2, but the incentive effect of such a carbon pricing on trading partners has not been clearly demonstrated. The introduction of the CBAM is causing concerns among Union economic actors, particularly the energy-intensive industries already pressured by the Union's excessive environmental legislation. In the context of the comprehensive review, the Commission will remove the phase-out of the free allowances under the EU ETS if a level playing field is not ensured.

    official amendment document ↗
19. Amendment 19PfEProposal for a regulation · Recital 1 c (new)
    Amendment

    (1 c) The CBAM has been introduced to compensate the effect of the EU ETS in order to address carbon leakage. As currently designed, the CBAM will not ensure a level playing field. For those reasons, the Commission will review the EU ETS and the CBAM by the end of 2025 for a potential deletion of these two measures.

    official amendment document ↗
20. Amendment 20PfEProposal for a regulation · Recital 3
    Current text

    (3) A new threshold based on cumulative mass per importer per year should be introduced in Regulation (EU) 2023/956, ensuring that more than 99% of emissions are maintained in scope. This is a robust and targeted approach as it accurately reflects the environmental nature of the CBAM by taking into account all imported emissions over a period of time in determining the threshold. It also eliminates the risk of circumvention through the artificial splitting of consignments by a single importer.

    Amendment

    (3) A new threshold based on cumulative mass per importer per year should be introduced in Regulation (EU) 2023/956, ensuring that 98% of emissions are maintained in scope. This is a robust and targeted approach as it accurately reflects the environmental nature of the CBAM by taking into account all imported emissions over a period of time in determining the threshold. It also eliminates the risk of circumvention through the artificial splitting of consignments by a single importer.

    official amendment document ↗
21. Amendment 21PfEProposal for a regulation · Recital 4
    Current text

    (4) A mass-based threshold reflecting the average emissions intensity of the volume of imported CBAM goods would better translate the climate objective of the CBAM. A single mass-based threshold applying cumulatively to all CBAM goods in the iron and steel, aluminium, fertilisers and cement sectors imported by importers during a calendar year is the simplest design for importers, as they will not have to obtain or provide any data additional to those provided in the customs declaration, thereby reducing substantially any CBAM-related administrative burden for these importers. A threshold set at a level of 50 tonnes will exempt the vast majority of importers from obligations under Regulation…

    Amendment

    (4) A mass-based threshold reflecting the average emissions intensity of the volume of imported CBAM goods would better translate the climate objective of the CBAM. A single mass-based threshold applying cumulatively to all CBAM goods in the iron and steel, aluminium, fertilisers and cement sectors imported by importers during a calendar year is the simplest design for importers, as they will not have to obtain or provide any data additional to those provided in the customs declaration, thereby reducing substantially any CBAM-related administrative burden for these importers. A threshold set at a level of 110 tonnes will exempt the vast majority of importers from obligations under Regulation…

    Excerpt — full text in the official PDF.
    official amendment document ↗
22. Amendment 22PfEProposal for a regulation · Recital 27 a (new)
    Amendment

    (27 a) A safeguard mechanism shall be introduced in order to suspend the application of the CBAM if clear and substantiated evidence demonstrates that its implementation significantly distorts competition or leads to commercial retaliation from third countries or if no viable, sustainable, and low-cost technological alternatives are currently available on the European market.

    official amendment document ↗
23. Amendment 23PfEProposal for a regulation · Recital 27 b (new)
    Amendment

    (27 b) Revenues generated from the application of the CBAM shall not be allocated to the general budget of the Union. Those revenues shall remain under the responsibility of the Member States where they are collected and shall be used exclusively for domestic purposes, in particular to support industries and sectors most affected by the Union's environmental policies.

    official amendment document ↗
24. Amendment 24PfEProposal for a regulation · Article 1 – paragraph 1 – point 1 – point b
    Current text

    The threshold laid down in point 1 of Annex VII shall ensure that at least 99% of the emissions embedded in the imported goods and processed products pursuant to Article 2(1) and (2) are not covered by the derogation referred to in the first subparagraph.

    Amendment

    The threshold laid down in point 1 of Annex VII shall ensure that 98% of the emissions embedded in the imported goods and processed products pursuant to Article 2(1) and (2) are not covered by the derogation referred to in the first subparagraph.

    official amendment document ↗
25. Amendment 25PfEProposal for a regulation · Article 1 – paragraph 1 – point 24 a (new)
    Amendment

    (24 a) the following article is inserted: 'Article 32a The Commission shall suspend the application of this Regulation in the following cases: (a) where clear and substantiated evidence demonstrates that its implementation significantly distorts competition or leads to retaliation from third countries;or (b) where no viable, sustainable, and low-cost technological alternatives are currently available on the Union market.'

    official amendment document ↗
26. Amendment 26PfEProposal for a regulation · Article 1 – paragraph 1 – point 25 – point a
    Current text

    Article 2(2) and Articles 4, 6 to 9, 15 and 19, Articles 21 to 22(1), Article 22(3), Articles 27 and 31 shall apply from 1 January 2026.;

    Amendment

    Article 2(2) and Articles 4, 6 to 9, 15 and 19, Articles 21 to 22(1), Article 22(3), Articles 27 and 31 shall apply after the entry into force of the legislative proposal following the comprehensive review.;

    official amendment document ↗
27. Amendment 27PfEProposal for a regulation · Annex II – paragraph 1
    Current text

    1. The threshold referred to in Article 2(3a) shall be set at 50 tonnes of net mass.

    Amendment

    1. The threshold referred to in Article 2(3a) shall be set at 110 tonnes of net mass.

    official amendment document ↗
28. Amendment 28PfEProposal for a regulation · Annex II – paragraph 2
    Current text

    2. For determining the threshold, the following methodology shall be applied: 𝑸̅ 𝒄𝒉𝒐𝒔𝒆𝒏 𝒔𝒖𝒄𝒉 𝒕𝒉𝒂𝒕 ∑ 𝑬𝒎𝒊 𝑵 𝒊=𝟏 × 𝟏_(𝑸𝒊 > 𝑸̅) 𝑻𝒐𝒕𝒂𝒍 𝒆𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒔 ≥ 𝒕𝒂𝒓𝒈𝒆𝒕 𝒔𝒉𝒂𝒓𝒆 𝒐𝒇 𝒆𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒔 𝒐𝒇 𝟗𝟗% Where: – 𝑄̅ is the mass-threshold in tonnes allowing to capture a given target share of emissions; – Annual emissions per importer; 𝑖, 𝐸𝑚𝑖 = ∑ 𝑞𝑖,𝑗𝐸𝐼𝑗 𝐽𝑖 𝑗=1 ; – 𝑞𝑖,𝑗 is the imported volume in tonnes by importer 𝑖 of the CN code 𝑗; – 𝐽𝑖 is the number of CN codes imported by importer 𝑖 among the four sectors considered (aluminium, cement, fertilisers, iron and steel); – 𝐸𝐼𝑗 is the emission intensity for CN code 𝑗 1 ; – 𝑇𝑜𝑡𝑎𝑙 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠: the total emissions in CO2 of the four CBAM sectors considered, that is the sum of cor…

    Amendment

    2. For determining the threshold, the following methodology shall be applied: 𝑸̅ 𝒄𝒉𝒐𝒔𝒆𝒏 𝒔𝒖𝒄𝒉 𝒕𝒉𝒂𝒕 ∑ 𝑬𝒎𝒊 𝑵 𝒊=𝟏 × 𝟏_(𝑸𝒊 > 𝑸̅) 𝑻𝒐𝒕𝒂𝒍 𝒆𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒔 ≥ 𝒕𝒂𝒓𝒈𝒆𝒕 𝒔𝒉𝒂𝒓𝒆 𝒐𝒇 𝒆𝒎𝒊𝒔𝒔𝒊𝒐𝒏𝒔 𝒐𝒇 𝟗8% Where: – 𝑄̅ is the mass-threshold in tonnes allowing to capture a given target share of emissions; – Annual emissions per importer; 𝑖, 𝐸𝑚𝑖 = ∑ 𝑞𝑖,𝑗𝐸𝐼𝑗 𝐽𝑖 𝑗=1 ; – 𝑞𝑖,𝑗 is the imported volume in tonnes by importer 𝑖 of the CN code 𝑗; – 𝐽𝑖 is the number of CN codes imported by importer 𝑖 among the four sectors considered (aluminium, cement, fertilisers, iron and steel); – 𝐸𝐼𝑗 is the emission intensity for CN code 𝑗 1 ; – 𝑇𝑜𝑡𝑎𝑙 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠: the total emissions in CO2 of the four CBAM sectors considered, that is the sum of cor…

    Excerpt — full text in the official PDF.
    official amendment document ↗
29. Amendment 29ECRProposal for a regulation · Recital 1 a (new)
    Amendment

    (1 a) The structural issues threatening the aluminium industry continue to be unadressed making the CBAM an ineffective tool for preventing carbon leakage in the aluminium sector, and creating substantial problems for the European aluminium supply chain — a highly energy-intensive and complex industry that operates as a price-taker in extremely competitive global markets, where Europe relies on imports for more than half of its needs. It is therefore necessary to suspend the implementation of the CBAM final phase and the phasing-out of free allowances for the aluminium sector until solutions are adopted in the future review of Regulation (EU) 2023/956 which fully assess the competitiveness o…

    Excerpt — full text in the official PDF.
    official amendment document ↗
30. Amendment 30ECRProposal for a regulation · Recital 1 b (new)
    Amendment

    (1 b) To avoid unfair competitivity for exporters of goods listed in Annex I to Regulation (EU) 2023/956, ETS free allocations and indirect cost compensation should be maintained at current levels.

    official amendment document ↗
31. Amendment 31ECRProposal for a regulation · Article 1 – paragraph 1 – point 25 – point a
    Current text

    Article 2(2) and Articles 4, 6 to 9, 15 and 19, Articles 21 to 22(1), Article 22(3), Articles 27 and 31 shall apply from 1 January 2026.;

    Amendment

    Article 2(2) and Articles 4, 6 to 9, 15 and 19, Articles 21 to 22(1), Article 22(3), Articles 27 and 31 shall apply from 1 January 2026, except for aluminium goods listed in Annex I which need complementary measures to avoid carbon leakages and unfair competitiveness from third countries.;

    official amendment document ↗
32. Amendment 32ENVIProposal for a regulation

    Replaces or inserts a longer passage — full text in the official document.

    official amendment document ↗
33. Amendment 33ESNProposal for a regulation · Recital 2 a (new)
    Amendment

    (2 a) In order to avoid exacerbating distortions of competition, simplifications and exemptions at least equivalent to those granted to importers should be adopted in the emissions trading system (EU ETS) for companies producing in Europe.

    official amendment document ↗