Navigating CBAM with confidence

Unveiling the carbon border adjustment mechanism and your path to compliance and savings with Yook

Yook software dashboard displaying a comprehensive overview of carbon footprints for all products

Understanding the Carbon Border Adjustment Mechanism

The Carbon Border Adjustment Mechanism (CBAM) is not just another regulatory update – it's a game-changing initiative that reshapes how businesses navigate global trade and environmental responsibility. As part of the European Union's ambitious commitment to achieving net-zero emissions by 2050, CBAM introduces a new era of transparency and accountability for companies both within and beyond EU borders.

Key Points Businesses Need to Know:

What is CBAM?

CBAM, also known as the Carbon Border Tax, is a mechanism designed to prevent carbon leakage – the shifting of greenhouse gas emissions from the EU to other countries. It aims to create a level playing field for businesses, encouraging global industries to align with greener practices.

Who does CBAM affect?

While CBAM's initial focus is on industries like steel, aluminium, cement, and fertilizers, its impact is far-reaching. If your company imports or exports products falling within CBAM's scope, understanding the implications is vital to your business's future.

Emission reporting and compliance

Businesses importing goods into the EU will face new carbon reporting requirements starting January 2023. By October 2027, carbon import permits linked to the EU's domestic carbon price will be introduced. Compliance with emission reporting is a necessity to navigate the changing landscape.

Emission tracking and reduction

CBAM places a spotlight on emissions throughout the supply chain. Understanding your product's carbon footprint and emissions is critical. Consider undergoing a Life Cycle Assessment (LCA) to identify emissions hotspots and adopt sustainable practices.

Prepare for financial impact

The cost of carbon import permits will be influenced by the EU's domestic carbon price, projected to reach €75 or more. Assess your supply chain's emissions and prepare for potential financial implications to stay ahead of cost pressures.

Future CBAM phases

CBAM's phased approach means businesses should be prepared for further changes. While initial phases focus on direct emissions, the second phase, starting in 2026, might expand to cover more goods and indirect emissions. Stay informed to adjust your strategies accordingly.

Calculating the economic consequences

Failing to meet CBAM requirements could have far-reaching consequences for your business. Discover the potential economic consequences and how Yook can help you steer clear of these pitfalls
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Navigating CBAM with Yook
Why choose a digital solution

As the Carbon Border Adjustment Mechanism (CBAM) ushers in a new era of environmental compliance, businesses are faced with the challenge of adapting to evolving regulations. While traditional consulting approaches have their merits, here's why opting for a digital solution like Yook can provide a distinct advantage:

Efficiency and Accuracy

CBAM mandates meticulous data tracking and reporting. A digital solution ensures automated, accurate calculations, and real-time updates, eliminating manual errors.

Time-Saving

Conventional consulting involves lengthy assessments and communication. Yook's platform streamlines the process, freeing more time for core business functions.

Cost Savings

By effectively managing your carbon emissions and complying with CBAM, your business can potentially minimize costs associated with carbon border taxes.

Scalability

As your business grows and your import volume changes, a digital solution scales effortlessly. Yook's platform adapts to your needs without renegotiating consulting contracts.

Continuous Updates

CBAM regulations will likely evolve over time. Yook's digital solution automatically updates to reflect the latest requirements, saving you from constantly seeking consulting updates.

Data Security

Yook employs robust security measures to safeguard your sensitive data, ensuring compliance with regulations like CBAM and data privacy laws.

Book a call to explore your CBAM strategy

Ready to explore how Yook can help your business thrive in the era of CBAM? Schedule a call with our experts to discuss your unique challenges and goals. Our team will provide a tailored consultation to outline how our solutions can drive value for your organization.