The Omnibus Package and CBAM

The new European Commission has taken office with the aim of restoring the European Union’s competitiveness. However, especially from a German perspective, there are increasing reports of large companies cutting jobs. As a result, the German government has also joined the debate.

Streamlining the Green Deal

Calls for reducing bureaucracy are growing louder. In particular, the measures under the Green Deal are becoming the focal point of efforts at the European level. The European Commission is responding with a simplification of reporting obligations under its so-called Omnibus Initiative.

The Omnibus Package

The Omnibus Package is intended to consolidate the reporting obligations of the CSRD, CSDDD, and EU Taxonomy into a single legislative framework without compromising the substance of these requirements. This more efficient framework is expected to eliminate overlapping regulations.

Publications by the German Federal Government

The German government has also made its position on the matter known. Specifically, two public statements have been issued: one from three federal ministers and another from the Federal Chancellor as part of a New Year’s message.

Position of the German Federal Government

The latter focuses primarily on the reporting obligations under CSRD, CSDDD, and the EU Taxonomy, calling for significant simplifications. In the Chancellor's view, the goals of these regulations are disproportionate to the massive bureaucratic burden they place on smaller companies in particular. For CBAM, the Chancellor has called not only for bureaucratic relief but also for export exemptions for goods destined for target markets where no carbon pricing is applied.

Impact on CBAM

Calls for relief or exemptions for the smallest companies have been present since CBAM was introduced. In Germany, the chambers of industry and commerce are particularly vocal on this issue. Whether and to what extent CBAM will also be included in the Omnibus Package remains unclear. However, companies only marginally affected by CBAM may hope for some relief.

The Export Exemption

An export exemption is typically part of a normal border tax adjustment alongside import duties. However, it is currently not provided for under CBAM. The evaluation of whether such an exemption is necessary is set to begin this year, though the regulation initially planned for a later date. For companies, this means an additional CBAM-related process that must be managed and controlled. At the same time, it would enhance competitiveness in export markets.

Support for Process Optimization

If you need assistance in streamlining your processes, we are happy to tackle this challenge with you. Feel free to contact us directly at helge@kolum.earth. We can likely save you 90% of your time.

Best regards, Helge Wieggrefe