CBAM and the Omnibus Initiative – Less Bureaucracy for Businesses

The European Commission's Omnibus Initiative introduces significant relief for businesses that remain subject to CBAM. The goal is to reduce administrative burdens without weakening the climate policy effectiveness of the mechanism. A particular focus is placed on simplifying the authorization process for registered CBAM declarants, adjusting reporting obligations, and introducing a threshold for occasional importers.

Simplifications for Registered CBAM Declarants

The registration process for companies acting as registered CBAM declarants has so far been associated with a high administrative burden. The Commission proposes to make consultations between national authorities optional. This allows Member States to decide more flexibly whether coordination with other authorities or the Commission is necessary. This change significantly reduces bureaucracy and accelerates the authorization process. Additionally, the introduction of a CBAM representative is being enabled. Companies that do not have the necessary expertise or operational capacity can delegate the calculation of emissions and the submission of CBAM declarations to external service providers. These third parties – such as environmental consultants or experts – must meet specific criteria, such as being registered in an EU Member State. However, responsibility for the correct calculation and submission of certificates remains with the authorized CBAM declarant.

Adjustment of Reporting Obligations and Deadlines

Another important adjustment is the alignment of CBAM deadlines with the EU Emissions Trading System. Companies will have more time to submit their CBAM declarations and surrender their certificates. The new annual deadline for submission and certificate surrender will be moved to August 31, while the repurchase deadline will be set for September 30, and the cancellation of certificates will occur on October 1. This harmonization with the EU ETS reduces the coordination effort for businesses operating within both systems.

Threshold for Occasional Importers

The Commission is also introducing a de minimis threshold of 50 tonnes per year to relieve small and occasional CBAM importers of administrative obligations. This threshold is based on an analysis of import data and ensures that 99 percent of emissions remain within the CBAM framework. Companies below this threshold must declare themselves as "occasional importers" and are exempt from CBAM authorization, emissions reporting, and the requirement to purchase CBAM certificates. The exemption primarily targets the embedded emissions associated with imports rather than just the volume of imported goods. This means that the threshold should be understood dynamically and is likely to be adjusted as the scope of products covered by CBAM evolves. Compliance with this threshold will be monitored using import data tracked by national authorities and the Commission. To prevent misuse, strict anti-evasion measures will be implemented. This approach not only reduces the administrative burden for small businesses but also allows the Commission and authorities to focus more on larger, emissions-intensive imports.

Conclusion and Recommendations

The planned changes will significantly ease the burden on many businesses. The registration process for CBAM declarants will be streamlined, reporting obligations harmonized, and small importers exempted from administrative duties. Companies should familiarize themselves with these new regulations early to adjust their internal processes accordingly. However, it is important to note that these changes still need to pass through the formal legislative process. Modifications to specific aspects may still occur.

Support with Implementation

If you need assistance in implementing the new CBAM requirements or an analysis of their impact on your business, feel free to contact us directly at helge@kolum.earth. Best regards, Helge Wieggrefe