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"Sustainability is not a trend, but a necessity."
This quote perfectly captures the current developments in international trade.
With the introduction of the Carbon Border Adjustment Mechanism (CBAM), the European Union (EU) is taking a significant step toward achieving its climate goals. This instrument aims to establish a fair price for the emissions generated in the production of CO₂-intensive goods, creating incentives for cleaner industrial production both within and outside the EU.
The transition to CBAM isn't happening overnight, which is good news for SMEs still getting their bearings. Since October 2023, we've been in the transitional phase – a "soft launch" if you will – where reporting obligations exist but financial charges haven't kicked in yet. The full implementation with actual payments starts from 2026.
What does this mean for your business? You have a crucial window right now to adapt your processes, understand your supply chain emissions, and potentially restructure your sourcing strategy without immediate financial pressure. Think of it as a practice run before the real game begins!
Initially, CBAM covers imports of cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. But don't breathe a sigh of relief just yet if you're in a different sector! The EU plans to extend CBAM to more product categories by 2026.
For SMEs, this means staying alert even if your current products aren't listed. The smart approach? Start measuring your carbon footprint across all product lines now, so you're not caught off guard when new categories are added.
While large corporations are assigning entire teams to CBAM compliance, SMEs need more cost-effective approaches:
Remember: The goal isn't perfect compliance overnight. It's about starting the journey and making continuous improvements.
Here's the silver lining that many overlook: CBAM can actually benefit forward-thinking SMEs! By adapting early, you can:
In many ways, CBAM isn't just a regulatory hurdle – it's a business opportunity disguised as a challenge.
The good news? An entire ecosystem of support is emerging. Beyond digital platforms like relatico, specialized consultants are offering "CBAM packages" tailored to SME budgets. EU member states are also launching support programs to help smaller businesses with compliance.
The bottom line? CBAM is coming, ready or not. But with some advance planning and the right support, your SME won't just survive in this new landscape – it might actually thrive!
To prevent businesses from drowning in paperwork, relatico offers smart tools to meet CBAM requirements:
Yes, CBAM brings challenges. But it also presents a great opportunity for businesses to make their processes more sustainable and gain a competitive advantage. Companies that embrace digital solutions and transparency in their supply chains now will benefit in the long term.
And with relatico? You’ll have more time to focus on what really matters – running a successful, sustainable business.
Bernd possesses extensive experience in strategic procurement, shaped by his tenure at Eckes-Granini, Symrise and DuPont de Nemours. Currently, he is focused on sustainable sourcing and supply chains, collaborating with the relatico team to develop practical software solutions. Additionally, Bernd runs his own agricultural business and is involved in supply chain projects globally.
