The Carbon Border Adjustment Mechanism (CBAM) has major implications for both importers of selected goods into the EU and producers in the countries of origin. The scheme aims to equalize the difference in carbon prices levied on high-emission products from EU versus non-EU manufacturers. Affected companies must gain an in-depth understanding of suppliers outside the EU from whom they procure CBAM-related goods and gather accurate primary emissions data.
At IntegrityNext, we are well-versed in helping companies navigate the complexities of regulatory due diligence and disclosure regimes. Our easy-to-use platform allows you to generate the supply chain insights you need to facilitate compliance with CBAM data collection and reporting obligations.
The CBAM is a highly complex regime which requires a sound understanding of regulatory obligations, your own company and supply chain dynamics.
Assess the impacts of the regulation
Analyze implications for your business and supply chain and identify imports into the EU falling under CBAM requirements.
Consider impact mitigation strategies
Review the potential of supply chain restructuring or the adjustment of production planning and sourcing strategies.
Assign internal responsibilities
Make sure the topic is managed by a dedicated team and pursue a cross-departmental effort.
Prepare for reporting obligations
Carry out a data gap assessment and set up adequate systems for emissions data collection, accounting, and reporting.
Engage your suppliers
Reach out to your suppliers early and establish open lines of communication.
Train internal staff and suppliers on the CBAM requirements.
EU emissions calculation methodology
Familiarize yourself with the method as soon as possible, it will be the only accepted approach from January 1, 2025.