According to Martijn Schippers, Associate Professor at Erasmus School of Law and expert in customs law, the Carbon Border Adjustment Mechanism, the mechanism by which the EU taxes imports of CO₂-intensive products, remains an important pillar of European climate policy. This can be read in his opinion article for Het Financieele Dagblad.
In this article, Schippers gives his opinion on the recent new proposals presented by the European Commission to reduce the administrative burden for companies. These so-called Omnibus proposals also include an adjustment of the Carbon Border Adjustment Mechanism (CBAM). A new exemption threshold will exempt 90% of current CBAM importers from reporting and payment obligations.
CBAM, which has been in effect since October 2023, requires importers to report the CO₂ emissions of basic products such as steel, aluminium and cement. From 2026, they will have to purchase certificates for this. The relaxation will remove the burden on smaller importers, but according to the European Commission, 99% of total emissions in CBAM products will still be covered.
Expansion and global impact
In addition to the administrative relief, the EU is looking at further expansion of CBAM. This summer it will become clear which additional products will be covered by the mechanism, with a legislative proposal expected in early 2026. This will also bring more processed goods under the scheme, which proponents say will create a level playing field for European companies that have long been bearing carbon costs under the Emissions Trading System (ETS).
Despite initial criticism from countries outside the EU, including concerns about the impact on developing countries and potential conflicts with WTO rules, CBAM is gaining traction around the world, with countries such as the UK, Australia and Canada considering similar measures. In the meantime, the European Commission is working to help developing countries implement it. ‘CBAM is alive and kicking and will only become more important’
‘CBAM is alive and kicking and will only become more important’
According to Schippers, CBAM remains a powerful instrument to prevent “carbon leakage” and to ensure fair competition. ‘The simplifications reduce the burden on companies, while the climate goal remains intact. CBAM is alive and kicking and will only become more important’, says Schippers in the opinion article.
- Associate professor
- More information
Click here to read Schippers' entire contribution in Het Financieele Dagblad of 5 April.
- Related content
- Related education
