Fosterra’s CBAM Compliance & Supply Chain Solutions
The EU’s Carbon Border Adjustment Mechanism (CBAM) presents new challenges for companies importing carbon-intensive goods like iron, steel, aluminum, and fertilizers into the EU. As CBAM moves into full enforcement, businesses must be prepared to manage the costs and compliance demands of this groundbreaking regulation. Fosterra offers a comprehensive CBAM solution designed to help companies assess, plan, and strategically respond to the impact of CBAM on their supply chain and overall carbon footprint.
Corporate Risks Under CBAM
CBAM brings specific risks for businesses operating in sectors affected by the regulation:
Increased Costs of Imports
Companies importing CBAM-regulated goods must now pay for CBAM certificates based on the embedded GHG emissions of the products they bring into the EU. As the cost of EU ETS allowances continues to rise, this can lead to unforeseen expenses and strain profit margins.Compliance Risks
The complexity of the CBAM regulation and the need for quarterly emissions reporting introduce significant compliance risks. Failure to properly calculate and report embedded emissions could result in penalties or excessive costs due to over-purchasing certificates.Operational Disruptions
As CBAM will require accurate data from suppliers across global supply chains, companies may face disruptions in securing verified emissions data. This can lead to delays in imports and supply chain bottlenecks.Carbon Leakage Exposure
Businesses that cannot adapt their supply chains to lower emissions may be exposed to carbon leakage risks, wherein production shifts to countries with less stringent regulations.
Fosterra’s CBAM Solution: Turning Risks into Opportunities
1. CBAM Impact Assessment
Our advanced CBAM impact tool gives businesses a clear understanding of the regulation’s financial and operational implications. With our solution, you can:
Estimate future costs of CBAM certificates based on projected emissions and EU ETS prices.
Model different scenarios to plan for cost reductions and risk mitigation.
Gain insights into which suppliers or products will incur the highest CBAM costs, allowing you to make strategic sourcing decisions.
2. Supplier Engagement for Compliance
Our supplier engagement platform, integrated into our CBAM offering, provides you with a centralized hub to:
Engage suppliers to track, verify, and report their emissions data, ensuring accurate and timely CBAM declarations.
Optimize your supply chain by identifying carbon-intensive suppliers and working collaboratively on decarbonization initiatives.
Build relationships that help meet Scope 3 emissions targets, avoiding penalties and excess CBAM costs.
3. Decarbonization Roadmap & Strategy
Fosterra’s expert team goes beyond compliance, helping you build a long-term strategy to reduce your carbon footprint and exposure to CBAM costs:
Implement renewable energy solutions across your supply chain, reducing emissions and future certificate costs.
Leverage real-time insights from our platform to continually track progress and optimize your decarbonization efforts.
Develop strategic partnerships with low-carbon suppliers and foster innovation in energy efficiency.
Benefits of Working with Fosterra
1. Proactive Risk Mitigation
By partnering with Fosterra, your business can proactively address the risks associated with CBAM rather than reacting to its financial and compliance burdens. Our tools allow you to foresee costs, streamline emissions reporting, and ensure seamless integration with suppliers.
2. End-to-End Supply Chain Transparency
Fosterra’s supplier engagement platform provides full visibility into Scope 1, 2, and 3 emissions across your supply chain. This transparency ensures accurate CBAM reporting and positions your company as a leader in supply chain sustainability.
3. Expertise & Award-Winning Solutions
With a proven track record in Scope 3 decarbonization, Fosterra’s solutions have won awards for excellence in supply chain engagement and sustainability innovation. Our team brings unmatched expertise in navigating complex regulations like CBAM while delivering measurable environmental and financial results.
4. Competitive Advantage Through Decarbonization
By reducing your exposure to CBAM costs and carbon leakage, you can enhance your competitive positioning in the EU market. Companies that embrace decarbonization are better positioned to capitalize on the growing demand for sustainable products and services.
Get Started with Fosterra Today
Contact us to learn how Fosterra’s CBAM solutions can help you achieve both compliance and decarbonization goals.