The European Union has formally adopted the amendments for CBAM simplification, introducing a 50-metric-ton annual import threshold to exempt small importers and exporters from reporting obligations. 

This exemption, which covers sectors like iron & steel, aluminum, fertilizer or cement but excludes electricity and hydrogen, is designed to ease administrative burdens while still covering 99% of embedded emissions in scope.

The new regulation also simplifies compliance by aligning emission boundaries with the EU ETS and adjusting certificate-holding rules. 

Authorized declarants will file their first annual report by September 2027. The rules include measures to prevent market circumvention and allow for the use of default values when reliable emissions data is unavailable.