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EU mulls simpler green scheme

[ March 5, 2025   //   ]

Changes to the EU’s Carbon Border Adjustment Mechanism (CBAM) are in prospect, says the British International Freight Association (BIFA) in an episode of BIFAlink TV (EU CBAM: Will It Be Simplified?)

CBAM will from 2026 require importers to report and pay a charge for carbon-intensive goods from overseas in an attempt to level the playing field between greener EU-based manufacturers and less green overseas companies.

However, says BIFA policy and compliance advisor for sustainable logistics, Jamie McKean, Brussels is now considering a proposal to simplify the scheme. Firstly it would reduce the number of companies required to report emissions under CBAM by introducing a de minimis threshold for the amount of carbon imported, which would cut the number of companies reporting under CBAM by 90% while still covering the vast majority of carbon emissions. The proposal also suggest that companies be allowed to use default values instead of the actual emissions data.

McKean stressed that the new proposals do not yet have the force of law and would need to pass through the Brussels legislative process.

The UK is due to put its own CBAM into force in January 2027. It would be interesting to see whether the UK proposals are changed to mirror those in the EU, said McKean.

CBAM can affect freight forwarders. While the legal responsibility for reporting falls on the importers, BIFA members are often asked by them to provide the information.

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