On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism

for the Committee on the Environment, Climate and Food Safety on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism

(COM(2025)0087 – C100035/2025 – 2025/0039(COD))

The Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

A.whereas the proposal by the Commission to simplify the Carbon Border Adjustment Mechanism(CBAM) aims at achieving significant savings in terms of administrative costs for EU importers of CBAM goods;

B.whereas the proceeds of the CBAM are to become an EU own resource according to the amended Commission proposal of 23 June 2023 for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union (COM(2023)0331); whereas Parliament approved this proposal in its legislative resolution of 9 November 2023;

C. whereas the Council has failed to implement the steps set out in the legally binding roadmap towards the introduction of new own resources laid down in the Interinstitutional Agreement (IIA), the objectives of this roadmap being to introduce sufficient new own resources to at least cover the repayment of NextGenerationEU (NGEU) debt;

D.whereas the estimated revenue from the CBAM would diminish in proportion to the CO2 emissions captured in the scope of the simplified regulation; whereas this impact would remain modest, presumably within one per cent of the overall estimated revenue;

E.whereas the Commission proposal entails additional operational expenditure in Heading 3 to be financed by means of redeployment from a budget line in Heading 4 and administrative expenditure for human resources in Heading 7 to be financed by redeployment within Heading 7;

F.whereas the penalties for CBAM declarants in breach of the regulation are, in principle, to be aligned with excess emission penalties under the Emissions Trading System (ETS); whereas the national competent authorities remain in charge of establishing and enforcing such measures based on implementing acts;

1.Takes note of the proposal to simplify the CBAM regulation in the context of an overall initiative to improve the EU’s competitiveness;

2.Recalls that Parliament has repeatedly endorsed a new own resource based on the CBAM and is keenly aware that this own resource is one of the few candidates that also enjoy tangible support from the Member States in the Council; regrets, therefore, that the embedded emissions covered under the reduced scope of the CBAM would lead to proportionately lower own resources revenue from the CBAM; acknowledges, however, that the amounts (in the order of EUR 20 million per year) and share (1 %) concerned are modest compared to the overall figures that the CBAM is expected to produce in terms of revenue;

3.Confirms that the amending regulation remains compatible with Parliament’s consultative opinion of 9 November 2023, which approves the Commission’s proposal for an amended Council decision on the system of own resources, including a new own resource based on the CBAM;

4.Considers that there are no provisions in the amending regulation that would fall under Rule 58(4), i.e. covering exclusively budgetary aspects which the committee responsible for the subject matter would not be allowed to amend; considers, furthermore, that no legislative amendments in this regard are necessary at this stage;

5.Recalls that the amendments or compromises in the course of the negotiations must not lead to any provisions contradicting Parliament’s established position on the use of CBAM revenue as an own resource; considers it necessary, therefore, to take part in the further negotiations, including the trilogues, in order to monitor the consistency with Parliament’s position on own resources and other pertinent budget-related provisions, and to ensure that the final agreement is compatible with the current MFF;

6.Observes certain flaws and errors in the Legislative Financial and Digital Statement (LFS) that should be rectified in the course of the further process, in a revised version of the Statement; questions, in this respect, the annual amounts listed in the table under Section 3.3 and, in particular, whether there will already be any revenue collected in 2026; also considers that the budget line (which is from the expenditure title) mentioned in this section is incorrect; recalls that in order to be consistent with present practice and the proposed own resources legislation, amounts indicated in this section should be shown ‘net’ of the 25 % collection costs to be retained by Member States and converted into current prices;

7.Acknowledges that the level of revenue foregone, in the order of EUR 21 million as of 2030, is non-material compared to the cost savings for companies, especially SMEs, and acceptable in view of the overall revenue expected from the CBAM;

8.Takes note of the necessary additional operational and administrative appropriations as indicated in the LFS; reiterates its long-standing position that new tasks and responsibilities should, in principle, be financed by fresh resources; deplores the limited margins available in the MFF and acknowledges that they could justify a certain level of reallocation; warns that the additional operational amounts will use a sizeable share of the remaining margin under Heading 3; also recognises that the redeployment from the instrument for financial support for customs control equipment (CCEI) implies the creation of some additional margin in Heading 4; determines that the amounts mentioned under points 3.2.1, 3.2.3 and 3.2.6 in the LFS are compatible with the MFF ceilings in Headings 3, 4 and 7, but will require adjustments in the financial programming; questions, nonetheless, whether such redeployment operations are in line with the ring-fencing logic of the MFF headings;

9.Questions why a reduction of the scope, by an alleged 90 %, of companies to be registered as authorised CBAM declarants does not lead to a lower level of administrative needs under Heading 7;

10.Acknowledges that any substantive changes in the governance of the implementation and enforcement of the CBAM, such as those related to the penalties for non-compliance, would be beyond the scope of this simplification initiative; considers, however, in light of the planned revision of the CBAM regulation, that the proceeds of the penalties could eventually be considered as general revenue for the EU budget;

11.Notes that the simplification initiative is also presented as a key enabler for a potential future extension of the scope of the CBAM; expects that such an extension would have significant budgetary implications, including for revenue flows;

12.Recalls that the Union’s budget is under strain and stresses the need for additional sustainable and resilient revenue; points to the legally binding roadmap towards the introduction of new own resources laid down in the IIA, in which Parliament, the Council and the Commission undertook to introduce sufficient new own resources to at least cover the repayment of NGEU debt; recalls its support for the amended Commission proposal on the system of own resources; is deeply concerned by the complete absence of progress on the system of own resources in the Council; calls on the Council to adopt this proposal as a matter of urgency and urges the Commission to spare no effort in supporting the adoption process; calls, furthermore, on the Commission to continue efforts to identify additional genuine new own resources beyond those specified in the IIA.

As part of its budgetary assessment, the Committee on Budgets also submits the following amendments to the proposal:

Amendment 1

Proposal for a regulation

Recital [10] a (new)

The rapporteur for budgetary assessment declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.