Case

A carbon initiative for a greener future

Case

A carbon initiative for a greener future

Europe is set to be the world’s first climate-neutral continent. Its Carbon Border Adjustment Mechanism charges a levy on carbon-intensive imports, discouraging polluting practices and promoting cleaner production globally. We lead the consortium developing the software platform.

The Challenge

Europe aims to become the world’s first climate-neutral continent. Climate policies, however, face free-rider problems if not enforced collectively.

Companies may relocate carbon-intensive production outside the EU, where standards are lower, or replace EU products with imports carrying a higher carbon footprint, thus free-riding on benefits created by those adopting sustainable practices.

Europe aims to become the world’s first climate-neutral continent. Climate policies, however, face free-rider problems if not enforced collectively.

Companies may relocate carbon-intensive production outside the EU, where standards are lower, or replace EU products with imports carrying a higher carbon footprint, thus free-riding on benefits created by those adopting sustainable practices.

The Solution

The Carbon Border Adjustment Mechanism (CBAM) solves this problem by pricing carbon emissions embedded in imported goods. This levels the playing field for EU industries meeting strict environmental standards and incentivises cleaner global practices in sectors prone to carbon leakage, such as cement, steel, aluminium, fertilisers, and electricity.

In practice, EU importers purchase CBAM certificates reflecting the carbon emissions generated by specific imported goods, ensuring that imports carry an equivalent carbon price to domestically produced goods.

To implement the new CBAM regulations, we’ve led a consortium developing a dedicated software platform for all stakeholders—including importers, EU officials, National Competent Authorities (NCAs), and operators from non-EU countries.

The Carbon Border Adjustment Mechanism (CBAM) solves this problem by pricing carbon emissions embedded in imported goods. This levels the playing field for EU industries meeting strict environmental standards and incentivises cleaner global practices in sectors prone to carbon leakage, such as cement, steel, aluminium, fertilisers, and electricity.

In practice, EU importers purchase CBAM certificates reflecting the carbon emissions generated by specific imported goods, ensuring that imports carry an equivalent carbon price to domestically produced goods.

To implement the new CBAM regulations, we’ve led a consortium developing a dedicated software platform for all stakeholders—including importers, EU officials, National Competent Authorities (NCAs), and operators from non-EU countries.

The Results

Beginning in 2026, CBAM will impose a tax on certain imported goods and eventually capture more than 50% of the emissions of the ETS-covered sectors.

The current transitional phase lasts between 2023 and 2025 and is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of the EU industry.

As a leader of the consortium developing the platform, we’re proud to contribute to a global shift to a more sustainable future.

Key functionalities of the platform include:

  • Declarant application management and reporting.
  • Comprehensive risk management tools to ensure compliance.
  • A certificate trading platform for transparency in emissions accountability.
  • Back-office administration portals for NCAs and EU officials.
  • Advanced statistics and analytics modules to drive informed decision-making.

Beginning in 2026, CBAM will impose a tax on certain imported goods and eventually capture more than 50% of the emissions of the ETS-covered sectors.

The current transitional phase lasts between 2023 and 2025 and is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of the EU industry.

As a leader of the consortium developing the platform, we’re proud to contribute to a global shift to a more sustainable future.

Key functionalities of the platform include:

  • Declarant application management and reporting.
  • Comprehensive risk management tools to ensure compliance.
  • A certificate trading platform for transparency in emissions accountability.
  • Back-office administration portals for NCAs and EU officials.
  • Advanced statistics and analytics modules to drive informed decision-making.

Want to learn more?

Reach out to

Spyros Ntokoros

General Manager EU Delivery

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