Carbon Border Adjustment Mechanism (CBAM)
The EU’s Carbon Border Adjustment Mechanism (CBAM) is a vital measure to prevent carbon leakage by ensuring imports pay a carbon price comparable to that within the EU. It requires importers and producers to closely monitor their supply chains for CBAM-affected goods and accurately report emissions data. It’s essential for stakeholders to adapt swiftly, embracing the move towards a greener economy and aligning with global carbon pricing efforts.
Seamlessly fulfill your CBAM reporting with SupplyOn
On 1 October 2023, the CBAM entered into application in its transitional phase, with the first reporting period for importers ended on 31 December 2023 and first report to be submitted 31 January 2024. SupplyOn has long track record in offering complex supply chain solutions including ESG due diligence and reporting. As part of our ESG Suite, our CBAM reporting software allows you to automatically collect CBAM data from your suppliers and prepare your “One Click” report to submit each quarter to support with your compliance.
Reporting obligations:
The transitional reporting (“CBAM report”) has to be done quarterly via the CBAM transitional registry. In the definite period, a declaration for the preceding calendar year will be mandatory by May 31 each year starting in 2026. Both reports include:
- Total quantity of imported type of goods in tons (product) or MWh (electricity).
- Total embedded emissions in tons of CO2e emissions (direct and indirect) per ton or MWh
- Emissions must be assigned to individual goods
- Production site must be specified (origin)
- CO2 price paid in the country of origin → certificate (proof of payment)
The CBAM initially applies in the following sectors:
- Cement
- Electricity
- Fertilizers
- Iron and Steel
- Aluminium
- Hydrogen
All goods for which the embedded emissions must be reported are defined by their CN codes (Combined Nomenclature) listed in Annex I to the CBAM Regulation. These are called ‘CBAM goods’.
Your benefits of our CBAM Reporting Manager
- Mapping of CBAM goods in one place with necessary information
- Sending bulk requests for all goods and suppliers with a few clicks, including a due data and automatic reminders
- Efficient monitoring of request status to maintain oversight of progress
- Plausibility check for suppliers’ emissions data
- Creating a ready to submit xml report with minimal effort
Automation
All workflows for data collection are mostly automated across entire journey
Turn Key Software
Quick activation of the software to get you started for your upcoming quarterly reporting
Reporting
CBAM aligned reporting capability with one click and in XML format for direct upload
Compliance
Methodology is entirely developed to fulfill the requirements