Carbon Border Adjustment Mechanism (CBAM) with SOLUTION4

Overview: What is CBAM?

CBAM is the EU’s Carbon Border Adjustment Mechanism: Starting in 2026, importers of certain energy-intensive goods (e.g., cement, iron, steel, aluminum, fertilizers, and electricity) will be required to comprehensively record and report the greenhouse gas emissions generated during production outside the EU. For each imported tonne of CO₂, corresponding certificates must be purchased—creating a “level playing field” between European and international markets and preventing carbon leakage.

CHALLENGES with CBAM

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Identification of all CBAM-relevant products based on commodity codes (HS codes)

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Collection and comprehensive documentation of all CO₂ emissions across the supply chain, including both direct and indirect emissions in the production process

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Challenging data availability and quality from suppliers in third countries, with missing CO₂ data

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Complex quarterly reporting obligations and submission to the relevant authorities

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Determination and safekeeping of the required number of CBAM certificates per tonne of CO₂

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Traceability and transparency of all emissions across multi-tiered, international supply chains

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Financial burdens and additional administrative effort for companies, particularly with numerous products and complex sourcing structures

Solution4

Your CBAM Software.
Automated. Integrated. Audit-Proof.

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Automated Identification

Solution4 identifies CBAM-relevant products and import transactions using HS codes and ERP data.

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CO₂ emissions of all imported goods

Solution4 calculates, documents, and simulates the CO₂ emissions of all imported goods. This can be done either through a bill-of-materials breakdown or by using standardized reference values that can be assigned automatically. Our CBAM solution helps efficiently map even highly complex product structures.

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Global Simulation

The global simulation enables the calculation of the impact of CO₂ certificate costs on production costs, contribution margin, and profitability of each imported product, including the simulation of price and volume scenarios.

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Quarterly Reporting

Our solution enables the automated creation of audit-ready emissions reports with all required information for timely submission. CBAM declarations can be submitted automatically through the EU portal using Solution4. This makes Solution4 a complete CBAM solution for the entire reporting process.

Transparent Traceability

We provide transparent traceability through complete documentation of all supply and emissions data, even for complex supply chains and mixed products.

Interfaces

Direct integration with ERP systems, supplier databases, hazardous materials databases, and BI tools for fast, customizable analysis via flexible interfaces compatible with all common systems.

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Your BENEFITS highlighted

Compliance-Security

Meet all CBAM legal requirements effortlessly.

Efficiency and Transparency

Centralized, automated data collection in a powerful CBAM software solution reduces errors and effort.

Cost- and Effect Simulation

Analyze the direct impact of CO₂-costs on product pricing and profitability across contribution margins, customers, and profit centers.

Competitive Advantage

Dependable CBAM reporting for seamless imports and strong trade relationships, with a scalable solution adaptable to new product groups as needed.

CBAM in Solution4

Automatically identify and flag CBAM-relevant products and imports through bills of materials and HS codes
Determine and validate of CO₂ emissions, with automated CO₂ calculation where supplier data is missing
Simulate emissions costs and assess their effects on pricing and key performance indicators
Automatically create and submit quarterly CBAM reports to the relevant authorities
Maintain full documentation, record management, and audit trails for regulatory and customs compliance