Yesterday (24 February), a copy of the legislative proposal to simplify the EU CBAM was leaked. The document seeks to simplify various elements of the regulation, including streamlining reporting requirements and exempting smaller emitters. Additionally, the document proposes delaying the sale of CBAM certificates to 2027, though this delay maintains surrender obligation for 2026 emissions. For the EU ETS, the ‘delay’ was unexpected but has no material impact. For importers, the proposed rule changes afford additional flexibility that may slightly reduce the need for CBAM hedging using EUAs.
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