The EU is at the forefront of international efforts to fight climate change. The European Green Deal sets out a clear path towards realizing the EU's ambitious target to become a climate-neutral continent by 2050. As EU raise their own climate ambition and less stringent environmental and climate policies prevail in non-EU countries, there is a strong risk of so-called carbon leakage meaning that companies based in the EU could move carbon-intensive production abroad to take advantage of a less regulated market.

The EU is applying a reporting system for products most affected to adress this problem. The system called CBAM will apply as from 2023 with the objective of facilitating a smooth roll out and to facilitate dialogue with third countries. As a second step importers will start paying a financial adjustment in 2026. The CBAM will initially apply to imports of cement, iron, steel, aluminium, fertilizers and electricity.

Legalisation on emission tracking is increasing and CBAM is most likely not the only future requirement on this topic that the industry will have to adapt to. Is your organization ready  for this change within the manufacturing industry? Do not hesitate to reach out to us if you want to discuss how you can trace and estimate CO2 emissions and other environmental data in order to be compliant.