Published: 21 May 2024
Summary
The EU Carbon Border Adjustment Mechanism requires importing companies to report on their emissions beginning in January 2024. Consequently, supply chains are under a great deal of stress to comply. This research shows supply chain leaders four key steps to take for effective compliance.
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Overview
Key Findings
The European Union expects the Carbon Border Adjustment Mechanism (CBAM) to become the main tool to prevent carbon leakage. All importers of certain goods must comply with the requirements beginning in January 2024. Some penalties might apply to organizations not providing accurate and timely reports.
CBAM is in its transitional phase until January 2026. Supply chain leaders should understand the resourcing and responsibility implications required today.
Importers to the EU must provide data on carbon emissions related to the goods they import during the previous quarter (or previous year once the transitional phase ends in 2026).
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