On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism

Committee on the Environment, Climate and Food Safety · Rapporteur: Antonio Decaro

✦ In short Full text Procedure & committee votes

✦ In short · AI summary of this text, generated 4 Sept 2026

Parliament's amended version of the proposed regulation amends the Carbon Border Adjustment Mechanism (CBAM) to exempt electricity generated entirely in the exclusive economic zone of an EEA Member State and imported directly into the Union, and clarifies the definition of embedded emissions of input materials.¶¶¶ The budgetary assessment notes the proposal's impact on CBAM revenue and own resources, calls for rectifying flaws in the Legislative Financial Statement, and stresses the need for progress on new own resources.¶¶¶

Committee position. The Committee on the Environment, Climate and Food Safety proposes amendments to exempt certain electricity imports and clarify embedded emissions definitions, while the Committee on Budgets provides a budgetary assessment with no legislative amendments at this stage.¶¶¶

Key points

The 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.¶¶
The definition of embedded emissions of input materials is clarified to refer only to those listed in Annex I and originating in third countries not exempted under Annex III, Section 1.¶
The budgetary assessment takes note of the proposal to simplify the CBAM regulation in the context of improving the EU's competitiveness.¶
It regrets that reduced scope leads to proportionately lower own resources revenue, but acknowledges the amounts (about EUR 20 million per year and 1%) are modest.¶
It confirms the amending regulation remains compatible with Parliament's opinion approving a new own resource based on the CBAM.¶
It considers no provisions fall under Rule 58(4) and no legislative amendments on budgetary aspects are necessary at this stage.¶
It calls for participation in negotiations to ensure consistency with Parliament's position on own resources and compatibility with the current MFF.¶
It observes flaws in the Legislative Financial Statement, questions revenue in 2026, and calls for amounts to be shown net of 25% collection costs.¶
It acknowledges revenue foregone of about EUR 21 million as of 2030 is non-material compared to cost savings for companies, especially SMEs.¶
It warns additional operational amounts will use a sizeable share of the remaining margin under Heading 3 and questions redeployment operations.¶
It questions why a 90% reduction in registered declarants does not lower administrative needs under Heading 7.¶
It calls on the Council to adopt the amended own resources proposal urgently and urges the Commission to support the adoption process.¶

Who is affected

Importers of electricity generated in EEA exclusive economic zones: exempted from CBAM.¶¶
EU importers of CBAM goods: benefit from administrative cost savings.¶
Companies, especially SMEs: benefit from cost savings outweighing revenue foregone.¶

Figures and deadlines

EUR 20 million per year: estimated reduction in CBAM revenue.¶
1%: share of overall estimated revenue affected.¶
EUR 21 million as of 2030: level of revenue foregone.¶
90%: reduction in companies to be registered as authorised CBAM declarants.¶
25%: collection costs retained by Member States.¶

Legal basis: Article 192(1) and Article 294(2) of the Treaty on the Functioning of the European Union¶

Written by a language model from the full text only; every figure comes from the text and ¶ links to the paragraph it rests on. Check the text itself before relying on it.