Reforms to EU Carbon Border Adjustment Mechanism Passed

29 October 2025

A Regulation stripping back elements of the EU CBAM Regulation has been adopted 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, the changes made by the amending Regulation aim primarily 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 changes 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. In this briefing we take a look at how the CBAM will be changed, and the impact on CBAM participants.

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