In a vote in the European Parliament’s environment committee on Wednesday, MEPs gave the green light to tougher enforcement measures on imports traded under the EU27’s carbon border tax.
The carbon border tax on products such as steel, aluminium, cement and fertilizers will become operational in January 2026, at which point companies will start paying for the emissions generated by their products.
The European Commission is set to announce new measures to tighten oversight of companies importing into the bloc, with lawmakers voting 68-7 to speed up the legislative process.
The measure aims to ensure a level playing field for European companies that are obliged to comply with the region’s own carbon market, the Emissions Trading System, under the Carbon Border Adjustment Mechanism (CBAM).
At the same time, the EU wants to encourage other countries to track their own pollution status. put a price on it. Nevertheless, the US government has expressed dissatisfaction with the EU27 carbon border tax, arguing that the law constitutes an unfair trade barrier.
Strong against carbon
The EU Executive is expected to announce new measures on December 10 that will set standardized CO2 values for each country or company to prevent importers from evading EU carbon border taxes.
In 2026, the European Commission plans to require physical on-site visits to each facility producing goods subject to the CBAM tax, according to a leaked document seen by Euronews.
From 2027, if the installation is low-risk, unchanged, and the data integrity is proven, verifiers may replace it with a virtual visit or abandon it altogether.
Companies reporting emissions based on the products they produce are allowed a margin of error of 5%, the minimum allowed before the data is deemed unreliable.
The document also suggests linking the EU’s carbon border tax with an internal carbon market, the Emissions Trading System.
Simplifying CBAM
In February, the committee recommended: “Simplification” of the CBAM method Adopted in April 2023.
In September, EU co-legislators quickly agreed on exemption criteria for companies with annual production of less than 50 tonnes of CBAM products. Before the simplification, this rule was not based on tonnage, but on a value basis of 150 euros per shipment.
The commission said the changes are expected to exempt around 182,000 importers, mostly small businesses and individuals, covering more than 99% of emissions.
For importers who remain within the scope of the CBAM, the adjustments will make it easier to comply with reporting requirements, simplifying the permitting process, calculating emissions, and meeting financial responsibilities.
The European Commission said the changes will reduce regulatory and administrative burdens and compliance costs.
Furthermore, as of 2027, the European Commission may decide on a default carbon price for third countries with carbon pricing rules in place and make it available in the CBAM registry and publish the method for its calculation.
Mohamed Chahim, MEP (S&D/Netherlands), said an ambitious and efficient carbon border tax could be aligned with climate mitigation policies.
The Dutchman said the new system would replace free allowances for sectors that shift production to countries with less stringent climate policies to avoid the higher costs of tighter regulation.
Automotive field
Brussels-based car industry lobbying group the European Automobile Manufacturers Association (ACEA) recently called on the EU executive to urgently explain the EU’s carbon border tax, citing the uncertainty affecting member states.
“Our members import and process large quantities of steel and aluminum, and their role in the proper functioning of the mechanism is critical, given the need for operators to be able to properly and accurately report the emissions contained in their imports,” the group said in a statement.
ACEA Secretary General Sigrid de Vries maintained automakers’ commitment to making CBAM work, pointing to investments in resources and compliance operations.
“However, there are too many critical unknowns at this very late stage that it will be virtually impossible to implement properly by January 1, 2026,” De Vries said.