Greenly launches CBAM tool to manage supply chain emissions and costs
With the EU’s Carbon Border Adjustment Mechanism (CBAM) set to enter into force in 2026 and increase import costs for high emissions products by up to 20%, Greenly unveils new platform that makes it easy for EU importers to identify low-carbon suppliers and reduce carbon tariffs imposed through this new mechanism, while automating compliance to EU authorities. Importers will benefit from the world’s most extensive database of supplier-level data, and suppliers will be able to certify their product footprints along EU standards and gain access to a CBAM marketplace.
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With full deployment set to take effect in 2026, the EU’s Carbon Border Adjustment Mechanism (CBAM) will impose an additional carbon price on high emissions imported goods (steel, aluminium, cement, fertilizers, hydrogen and energy) as they enter the EU Single Market. This will align the cost of such inputs, with what would have applied had these goods been produced within the bloc.
The measure aims to prevent carbon leakage, bridging the gap between the EU’s stringent climate policies and less rigorous regulations elsewhere. This will be implemented through a progressive pricing model, wherein imports from non-EU territories will be subject to gradually increasing tariffs. For instance, steel imports from China are subject to an initial tariff of 5€ per tonne in 2026, eventually rising to 400€ per tonne by 2034. Import categories will be extended further after 2026. .
Unless companies shift quickly to low-carbon suppliers and adjust their supply chain, CBAM’s entry into force will potentially increase import prices for manufacturers by up to 20%. This shift of suppliers is expected to drive long-term decarbonization.
Carbon Adjustment Forecasting, Purchasing AI & Emissions Minimization
To make compliance easy and reduce supply chain costs, Greenly’s CBAM solution harnesses the company’s database of supplier-level carbon data, helping EU importers minimize emissions and cost by adjusting their supply chains. In practice, the solution offers the following possibilities:
EU importers automatically identify suppliers at risk by integrating Greenly with their financial and purchasing software
CBAM-related cost adjustments are automatically forecast by Greenly’s purchasing AI, helping companies anticipate costs, prepare appropriate scenarios or change suppliers altogether
Instant access to all existing data on CBAM suppliers already engaged on the platform, to minimize the cost of retrieving cost-critical information
Purchasing managers can reach out to suppliers with missing data to secure compliance, raise awareness on the need to minimize emissions, for instance by sourcing greener electricity or adopting less energy-intensive production processes.
Procurement departments access alternative supplier suggestions to minimize emissions and associated CBAM costs, helping assess financial trade-offs and providing guidance towards cost-saving opportunities,
According to Alexis Normand, CEO of Greenly, “Without timely action, CBAM will represent a major cost increase for importers of carbon-intensive goods. As it stands, it is also a major compliance burden, one we seek to alleviate through technology. At Greenly, we help companies cut through red tape, by automating reporting. More fundamentally, we identify low carbon suppliers to decarbonize supply chains effectively and effectively reduce costs. Should it successfully force suppliers to decarbonize as a condition to accessing the EU Single Market, the CBAM will be a great success.”