From www.pwc.com.au: On October 1, 2023, the European Union implemented the Carbon Border Adjustment Mechanism to equalize carbon costs and prevent carbon leakage, introducing an Omnibus Simplification Package to ease compliance for small to medium importers.

The OSP proposes a 50-tonne annual exemption threshold, simplifying calculations of embedded emissions and delaying financial obligations related to CBAM until February 2027.

Australian businesses exporting to the EU will need to monitor their export volumes closely and assess the implications of the new threshold and calculation methods for compliance.