Dramatic turn of events in Brussels: on Tuesday, May 27, the 27 EU member states approved the exemption of nearly 90% of companies targeted by the carbon border tax. This is a massive relief for European SMEs, which for months had been denouncing the administrative burden of a mechanism deemed out of touch with reality.
Raising the application threshold to 50 tonnes of CO2 per importer now allows 182 companies, out of the 000 initially affected, to avoid the reporting requirement. This adjustment is welcomed by France, represented by Minister Benjamin Haddad, who sees it as a "first strong signal of simplification" without, according to Brussels, losing more than 200% of environmental efficiency.
A reduction that calls into question European logic
The Carbon Border Adjustment Mechanism (CBAM), which was supposed to tackle unfair competition from the most polluting countries, has seen its scope considerably reduced even before its planned entry into force in 2026. For climate advocates, this is a step backward that risks undermining the coherence of the European Green Deal. For businesses, it's a breath of fresh air after months of concerns about their competitiveness.
Another major shift: the suspension of fines for European car manufacturers. They faced penalties of up to €15 billion for failing to meet electric vehicle sales quotas. Paris pointed out this paradox, given that these manufacturers have invested heavily in electrification. This decision offers temporary respite to a sector already weakened by falling demand.
The von der Leyen Commission is now trying to correct the excessive regulations imposed in the name of the green transition. But by easing today a tax it itself imposed yesterday, Europe is once again exposing its regulatory inconsistencies.
