Carbon Border Adjustment Mechanism (CBAM) in the SME sector

The Carbon Border Adjustment Mechanism (CBAM) affects large parts of German industry. All companies within the European Union (EU) that import iron, steel, cement, aluminium, electricity, fertilizers, hydrogen, some upstream and downstream (in particular iron and steel) products - in pure or processed form - from non-EU countries are subject to the rules of the CBAM. As early as October 1, 2023, with the start of the transition phase, companies will be subject to the first reporting obligations in this regard with the first report submission in January 2024.

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What is CBAM?

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The Carbon Border Adjustment Mechanism (CBAM) is part of the EU "Fit for 55" package and is linked to the European Union's target of reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. CBAM is a supporting instrument designed to ensure that the EU's efforts to reduce emissions are not undermined. It is designed to combat the risk of carbon leakage, whereby European manufacturers competing in international markets avoid emissions costs by shifting production and pollution to countries with more lax environmental regulations.

CBAM works by imposing a carbon levy on certain goods produced outside the EU. Companies wishing to import such goods into the EU must purchase certificates corresponding to the emissions generated during the production of the goods.

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How can Tacto provide support?

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CBAM Quick Scan: Identification of CBAM-relevant articles and suppliers based on the country of origin and evaluation of the product portfolio affected by CBAM

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Automated data query: Automatic dispatch of (CBAM) queries (CO2 equivalence etc.) to entire supplier groups as well as tracking and evaluation of responses

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Item-specific detailed queries: Detailed queries at item level for complete CBAM transparency at supplier and item level

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CBAM report at the touch of a button: Automated generation of the CBAM report and continuous documentation of all steps (e.g. queries to suppliers, calculation of CO2 emissions)

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Training and advice: Training and advice on CBAM and current developments in CBAM legislation

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If you would like to find out more about the background, requirements and solutions for CBAM and how you should position yourself now, download our white paper "Carbon Border Adjustment Mechanism (CBAM) in SMEs: Legal reporting obligations since October 2023".

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