CBAM Omnibus Reforms on Track for Adoption
CBAM developments recap - this week's issue brings you a brief recap of some of the most relevant developments in the CBAM and carbon pricing space over the past few weeks.
At a Glance:
- CBAM Omnibus Reforms on Track for Adoption
- CBAM Export-Leakage Guidance Expected in June
- Taiwan Prepares for the Launch of Its Own CBAM
- UK and EU Agree to Work Toward Linking ETSs, Though Timeline Remains Uncertain
- India and EU Advance Dialogue on CBAM During FTA Talks
CBAM Omnibus Reforms on Track for Adoption
The European Parliament and the Council of the European Union have reached an agreement on the CBAM-related simplification package — part of the Omnibus I reforms. The deal includes support for a new de minimis mass threshold, under which companies importing up to 50 tonnes per year will not be subject to CBAM rules. This threshold is expected to exempt around 90% of importers while still covering 99% of emissions from imports of iron, steel, aluminium, cement, and fertilisers.
Go to Issue 5 for more details.
CBAM Export-Leakage Guidance Expected in June
The European Commission is expected to issue official guidance this month on how exports will be treated under CBAM. This is a key step toward clarifying the mechanism's impact on EU-based exporters and addressing concerns raised by various industry associations regarding this aspect of the system.
Go to Issue 5 for more details
Taiwan Prepares for the Launch of Its Own CBAM
Taiwan's Ministry of Environment plans to begin a trial-run phase of its own CBAM in 2026, with full pilot reporting for steel and cement in 2027.
Go to Issue 4 for more details.
UK and EU Agree to Work Toward Linking ETSs, Though Timeline Remains Uncertain
The UK and EU have committed to pursuing the linkage of their Emissions Trading Systems (ETSs), an important step toward harmonisation and potential CBAM exemptions. However, no definitive timeline has been set for when this linkage might be completed, suggesting that UK exporters of CBAM goods will still need to prepare for upcoming verification obligations during the CBAM definitive period.
Go to Issue 1 and 3 for more details
India and EU Advance Dialogue on CBAM During FTA Talks
As part of ongoing free trade agreement talks, India and the EU are increasing technical-level cooperation on CBAM’s design and implications. Both parties have expressed interest in maintaining dialogue during the transitional period to mitigate the mechanism’s impact on Indian exporters.
Go to Issue 3 for more details.