Post by CO2 IQ

🇪🇺 The EU Council has set its position on the next CBAM update – with 3 implications: Scope expansion, data streamlining and cash-flow relief. Last Friday, the EU Council agreed on its General Approach to amendments of CBAM Regulation 2023/956. In December, the European Commission presented its proposal for downstream scope extension and anti-circumvention measures. While the Council’s amendments look small, they include targeted adjustments that could significantly impact implementation. There are 5 key changes in the texts: 📦 Confirmed downstream extension: A broad commodity list of metallic equipment, machinery, and vehicles would be added to CBAM. → Strong indication that CBAM will extend further into supply chains. ⛔️ New §27a exemption clause: Instead of the broad concept of “serious & unforeseeable circumstances”, the Council introduces an examination procedure for temporary exemptions. → More transparent exemption rules. 🏭 Mandatory operator registration for actual data (§10): To facilitate the verification of actual data via the CBAM Registry, operators need to be registered. → Streamlined data flows through the CBAM Registry 💶 Flexibility for the quarterly 50% certificate holding (§22): Until the first CBAM declaration, importers can rely on actual data pending verification → Cash-flow relief in Q1 and Q2/2027. 🌍 No explicit reference to Article 6 carbon credits (§9): The Council removes explicit mention of Article 6 credits for carbon price deductions. → A more cautious approach to international credits in CBAM.   👉 This now forms the Council’s position ahead of trilogue negotiations with the European Parliament. As the Parliament’s position still needs to be finalized, a deal is not expected before the end of this year. More in our update webinars this week (link in comments 👇🏽)   #CBAM #CarbonPricing #TradeCompliance #Decarbonization #SupplyChain