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EU Regulatory Updates UK traders might have missed so far

In April 2025, The European Commission announced some updates and revisions on their CBAM (Carbon Border Adjustment Mechanism), as well as Corporate Sustainability Reporting and EU Deforestation Regulation. The below provides traders with a summary of such updates.


CBAM

  • Authorised CBAM Declarant: The Commission announced the application process to become an authorised declarant launched on the 31st March 2025 in the CBAM registry.

  • CBAM simplification Package: The EC also announced that as part of their Omnibus package on the 26th Feb 2025, some changes have been proposed to simplify CBAM and cutting red tape:

  • Exemption for Small Importers: A new threshold exempts importers bringing in less than 50 tonnes of CBAM goods annually, excluding electricity and hydrogen, from CBAM obligations. This change is expected to exempt approximately 90% of importers, primarily small and medium-sized enterprises, while still covering over 99% of emissions.

  • Deferred Certificate Purchases: The obligation to purchase CBAM certificates for 2026 imports has been postponed to February 2027, providing importers additional time to adapt to the new system


    Further information and guidance, please read here


    Corporate Sustainability Reporting

  • Delayed Implementation: The European Parliament voted to delay certain sustainability reporting rules, particularly for smaller businesses, until 2027, with first reports due in 2028. This move aims to alleviate regulatory pressures and enhance competitiveness .​

  • Criticism Over Easing Regulations: Environmental and human rights groups have filed a complaint against the European Commission, alleging that proposed changes to sustainability rules were made without adequate public consultation and may undermine corporate accountability.


    These adjustments reflect the EU's efforts to streamline environmental regulations while maintaining its commitment to climate goals. Businesses are encouraged to stay informed on these developments to ensure compliance and leverage potential opportunities arising from the evolving regulatory landscape.


Read further information here


EU Deforestation Regulation (EU DR)

​In April 2025, the European Union introduced significant updates to its Deforestation Regulation (EUDR), aiming to balance environmental objectives with industry concerns.​


Implementation Timeline Adjusted:

  • The EUDR's enforcement has been postponed by 12 months. Large companies are now required to comply by 30 December 2025, while small and micro-enterprises have until 30 June 2026. This delay addresses readiness concerns from both EU member states and global trade partners, including Brazil and Indonesia .​


Eased Reporting Obligations:

  • Companies will now submit a single annual due diligence statement instead of per-shipment declarations. This change aims to reduce administrative burdens while maintaining the regulation's core objectives.


Risk-Based Country Classification:

  • By 30 June 2025, the EU will categorize countries as high, standard, or low risk concerning deforestation. Imports from low-risk countries will face simplified compliance procedures, whereas high-risk countries will be subject to stricter scrutiny


Read updated guidance here


Sources: European Commission, Dojo Consulting, EY, Reuters, agrinfo.eu


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