On 1 October 2023, the Carbon Border Adjustment Mechanism (CBAM) entered into a transitional phase, with the first reporting period for importers starting 31 January 2024. As a result, certain carbon-intensive products from outside of the EU will be subject to additional CO2 reporting obligations. For EU importers, this can be an onerous task.
Once the permanent system enters into force on 1 January 2026, importers will need to purchase CBAM certificates for their relevant imports, thus incurring a cost element due to the reporting obligations.
A game changer for carbon pricing and global supply chains, adoption of CBAM will have significant implications for industrial supply chains. It will not only affect producers of covered goods but also industries downstream and upstream of the value chain. Customers will now be looking for scarce green or recycled steel and green cement, increasing competition for access to low-carbon materials and products, which will in turn drive up their demand. As the cost of carbon-intensive products rises, companies wanting to reduce their carbon footprint may have to adapt their business models, supply chains, and operations.
So the question arises: Can companies actually simulate such scenarios and review their supply chain network design with these new parameters?
The answer is yes.
And we know just how to help you here. Join our panel of experts at our upcoming PwC webinar, and co hosted with AIMMS, where we demonstrate practical use of supply chain optimisation technology for carbon modelling in your supply chain network design.
Adapting to carbon regulations: shaping the future of your supply chain
Topics we’ll discuss
Why is this important? We’ll give an update on the regulatory framework of CBAM; what you should be aware of and how companies can prepare.
How does our advanced network design framework support carbon modelling? We’re leveraging our considerable knowledge on this to encompass carbon footprint in supply chain optimisation, together with traditional objectives of service, cost and working capital.
How does this translate into practical application and digital supply chain models? AIMMS will give a demo that simulates a real case study on how CBAM affects a company’s supply chain in different scenarios.
