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On 26 February 2025, the EU Commission has adopted the 'Omnibus' package of proposals aiming to boost competitiveness of EU companies while continuing to follow the climate and sustainability goals. One of the proposals introduces amendments to CBAM rules ensuring effective prevention of carbon leakage and simultaneously reducing the companiesâ€� administrative burdens. 

1. Small importers (mostly SMEs and individuals) will be exempt from CBAM obligations by introducing a new cumulative annual threshold of 50 tons per importer. This will eliminate CBAM obligations for approximately 90% of all importers, while still covering over 99% of CO2 emissions in scope.
2. The rules for companies obliged to report under CBAM will be simplified, in particular, in respect of authorization process for CBAM declarants and the calculation and reporting of embedded emissions.
3. Anti-abuse and anti-circumvention provisions will be developed in cooperation with local authorities.

These simplifications aim to enhance the efficiency of CBAM in anticipation of its extension to other ETS sectors, downstream goods, and indirect emissions, which are expected to be proposed in early 2026.
 

Should you like to further discuss the content and potential impact of the Decision to your business, please contact one of our trusted advisors from the Indirect Tax Department at ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø Cyprus.

ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø’s Indirect Tax team provides advice and assistance at the Cyprus and international level. We structure our effort to dovetail with your business issues and strategy. Our focus is on supplying value adding and pragmatic advice rather than just a list of recommendations.

Our tax professionals are able to review your company’s current tax position and provide relevant advice and planning on a range of indirect taxes, including VAT, green taxes, customs duties and excise taxes (such as tax audits, reorganizations and acquisitions, etc.). Furthermore, we can help your company with its administrative obligations and contacts with administrative bodies.