EU Commission launches call for evidence on CBAM rules and methodology, EURANIMI seeks 6-month grace period

Key takeaways:

• The EU launched its call to evidence with the aim to “gather the opinions of all stakeholders” through a series of consultations.
• EURANIMI’s immediate response to the consultation was to call for the EU to grant a six-month grace period.
• The EU Commission’s announcement is part of recent efforts to simplify the upcoming policy.

The EU launched its call to evidence with the aim to “gather the opinions of all stakeholders” it stated.

The first consultation looks at the methodology for the determination of direct embedded emissions, embedded emissions for electricity, indirect embedded emissions and the default values for goods other electricity when actual emissions data is unavailable.

The second consultation concerns how CBAM certificates will be surrendered and adjusted to reflect EU ETS free allowances, this will occur through developing a methodology for calculating embedded free allocation and developing CBAM benchmarks derived from EU ETS benchmarks.

And thirdly, the Commission seeks inputs into the rules for importers applying for a reduction in the number of CBAM certificates to purchase to take into account the carbon price paid in a third country. The conversion should include converting the price paid in a foreign currency to euro, should specify the evidence required to make the conversion and have clear eligibility rules for third parties certifying the evidence.

The EU’s main target audience is all relevant stakeholders impacted by CBAM inside and outside of the EU, authorities of the EU Member States in charge of CBAM implementation and academic institutions.

The EU’s call for evidence is currently open and is set to run until September 25, 2025. After this date, a draft act will be published and in the fourth quarter the commission may choose to adopt the act.

Replies to the consultation will be published on the EU’s website for four weeks. So far, only two companies have responded to the call for evidence.

EURANIMI responds to consultation seeking 6-month CBAM grace period

In a press release published on Friday August 29, the European Association of Non-Integrated Metal Importers and Distributors (EURANIMI) responded to the EU’s consultation, calling for the EU to grant a six-month grace period before importers are required to surrender CBAM certificates for stainless steel imports, given companies “still lack the basic data needed to calculate their CBAM costs”.

The new consultations launched by the EU Commission show that the EU is “not yet ready for [the] January 2026 launch [of CBAM]”, EURANIMI said. CBAM will enter its definitive phase on January 1, 2026.

“Contracts for next year are being signed now. Without clarity on benchmarks and verification rules, our members cannot calculate costs, negotiate prices or guarantee supply. This uncertainty threatens the stability of Europe’s stainless steel supply chain, especially for SMEs,” a EURANIMI spokesperson said in the press release.

Instead of a postponement to the policy, which would require approval by both the European Parliament and Council and is “politically unrealistic at this stage”, EURANIMI seeks transitional exemptions that would “provide vital breathing space for importers and customs authorities to adapt to the definitive rules,” the press release said.

A transitional exemption would fall within the European Commission’s remit allowing it to be applied quickly to “ensure market stability”.

As part of this proposal, importers would not be required to surrender CBAM certificates for stainless steel imports for six months starting from when definitive CBAM rules and benchmarks are published.

EU Commission continues to explore CBAM simplification

Thursday’s announcement is part of the EU Commission’s recent efforts to simplify the forthcoming policy.

On June 18, the Council of the EU Presidency and the European Parliament’s negotiators have reached a provisional agreement on the simplification of CBAM, which saw a wider ‘de minimis’ exemption from CBAM obligations that apply to importers that do not exceed the single mass-based threshold of 50 tonnes of imported goods per importer per year.

According to the announcement, in most cases, the measure can be expected to exempt small and medium enterprises (SMEs) and individuals who import small or negligible amounts of goods covered by the regulation from CBAM obligations.

Then, on August 21, as part of the US and EU’s Framework on an Agreement on Reciprocal, Fair and Balanced Trade the EU committed to “additional flexibilities” within CBAM as part of its wider effort towards simplification.

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