Commission commodity derivatives consultation – CBAM delays and changes
The European Commission DG FISMA has opened this consultation on various topics around commodity derivatives. These include:
- Data reporting especially around the split between EMIR and REMIT.
- The Ancillary Activity Exemption found under MIFID II.
- Position Management and Reporting.
- Position Limits.
- Circuit Breakers.
- Whether traders should be in the EU.
- The Market Correction Mechanism.
- Organisational requirements.
The topics are wide ranging and the outcomes could have a significant impact on many market participants. The consultation closes on 9 April 2025.
Separately, the Commission DG TAXUD has announced several changes in the Carbon Border Adjustment Mechanism (CBAM). The announcement can be found here on the main CBAM page. The changes include:
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- A delay to the start of submission of certificates due to imports to 2027 from 2026, although the calculation period will still start in 2026.
- A lower threshold excluding many smaller importers from scope. However this does not apply to electricity or hydrogen.
- Some clarifications, including that “indirect emissions” do not apply to electricity.
We are currently in the “transitional” phase of CBAM where reporting is required but not the submission of certificates for imports.
