CBAM (Carbon Border Adjustment Mechanism) is a European Union regulation designed to impose a tariff on carbon-intensive imports. It aims to prevent carbon leakage and ensure that EU industries are not undercut by foreign competitors with lower environmental standards. As the carbon allowance prices increase, businesses importing high-carbon goods will face rising costs unless they take action to reduce their emissions.

The sectors impacted by CBAM are iron and steel, aluminium, cement, fertilizers, hydrogen, and electricity. These industries typically have high carbon emissions, and CBAM aims to ensure they face the same carbon pricing as EU producers.

The introduction of CBAM will increase the cost of importing carbon-intensive goods into the EU. For example, the price of allowances will rise significantly up to 2034, making it essential for companies to address emissions in their supply chains now.

Greenly helps businesses lower their carbon exposure and mitigate rising allowance costs by:
Automating emissions data collection and reporting
Engaging suppliers to reduce emissions
Identifying alternative low-carbon options and emission reduction opportunities
Providing insights on how to optimize your supply chain for better sustainability outcomes
By lowering the overall carbon intensity of your supply chain, Greenly helps reduce your financial exposure to CBAM tariffs.
Using Greenly offers both cost savings and compliance benefits. By reducing carbon emissions, businesses can lower their CBAM tariffs and achieve long-term cost efficiencies. Additionally, Greenly ensures regulatory compliance, avoiding penalties and promoting fair competition. This aligns with corporate social responsibility goals and mitigates climate-related risks.

No, Greenly is an all-in-one sustainability platform. While we excel in CBAM compliance, our platform also supports broader sustainability efforts such as GHG assessments, decarbonization strategies, and reporting for other regulations like CSRD. This means you can manage all of your sustainability needs through a single platform.

It’s best to start as soon as possible. The impact of CBAM on costs will only grow over time, and starting early gives you a head start on understanding and reducing your carbon footprint. By beginning the process now, you can identify cost-saving opportunities, engage your suppliers, and ensure compliance well before the tariffs increase significantly.

As a declarant, your company will face increasing costs due to the CBAM tariffs imposed on carbon-intensive imports. The price of allowances will rise over time, and by 2034, your costs could significantly increase—potentially as much as 400 euros per ton for certain imports. If you fail to reduce the carbon intensity of your supply chain, you will be forced to pay higher allowances, leading to a greater financial burden.