Impact of ‘Omnibus proposal’ on CBAM Business

The ‘Omnibus proposal’ which is also known as ‘Simplification package’ was adopted on 26 February 2025 by EU commission. It is targeting to bring simplicity in various regulations brought-in during past two years to meet the ‘European Green deal’ – a vision of EU.

The proposal has asked for revisions/amendments in four major areas: CSRD (Corporate Sustainability Reporting Directive), CSDDD (Corporate Sustainability Due Diligence Directive), EU Taxonomy and CBAM (Carbon Border Adjustment Mechanism).

The major changes proposed in CBAM is:

1. Importers importing <50 tonnes per year of CBAM goods are exempted from CBAM.
2. Simplification in the compliance obligation of the importers, which include simple steps for authorization of declarants, calculation of emissions, and  management of CBAM financial liability.

There is no major impact for the Indian exporters, since the exemption is from the importer’s side.

There is no change in the timelines proposed earlier. The Transition period is ending in December 2025 and Definitive period is starting from January 2026.

Importers have a choice to upload default values for the imported goods and buy CBAM certificates accordingly or to get verified emissions data from exporters to calculate the quantity of CBAM certificates to be bought.

The verification body eligible to conduct this verification, must accredited by the EU member countries as per their defined accreditation criteria. The accreditation criteria is yet to be published. Verification bodies also can register in the CBAM registry portal.  Importers are generally registered in the portal as CBAM declarant and operators/exporters, who produce the CBAM goods can also upload their product specific embedded emission data in the same portal along with the verification certificate.

The operators who make their own metal have an advantage of having low emissions and can go ahead with the verification process. However, the operators who were using default values for precursors, may find their specific embedded emission values higher than the default values allowed for use by the importers. In such cases, importers may not be interested in the verified actual emission data.

Default values to be used during the definitive period will be declared by the commission, which is expected to be the average emission intensity of the ten exporting countries with the highest emission intensities for which reliable data is available.

Overall, the simplification process will aid importers to file their CBAM reports quickly, however, not much impact is envisaged from the exporter’s point of view.

Why should you choose DQS India?

• Expertise in CBAM Compliance: Our team possesses extensive knowledge and expertise in Carbon Border Adjustment Mechanism (CBAM) regulations, ensuring accurate reporting and compliance with EU requirements.
• Tailored Solutions: We offer customized services designed to meet the specific needs of your organization, providing comprehensive support throughout the CBAM reporting process.
• Assurance and Accuracy: With our meticulous approach to data verification, you can trust that the GHG data submitted to EU customers will be accurate and compliant with CBAM standards.

• Compliance Assurance: By choosing our services, you can rest assured that your reporting format will meet CBAM requirements, minimizing the risk of non-compliance and associated penalties.
• Trusted Partner: As a trusted partner, we prioritize transparency, reliability, and client satisfaction, ensuring that your organization receives the support and guidance needed to navigate the complexities of CBAM reporting effectively.