As a CBAM declarant, will have to articulate the data and quality required from your suppliers in order to modify current ERP-systems to consider new parameters, while overarching, collaborative systems should be developed and implemented across business units to ensure real-time data reflecting the production process.
When actual emissions cannot be adequately determined, default values will be used. The Commission will proportionately determine the designed mark-up (%) in the implementing act of the CBAM Regulation.
The supply chain of products manufactured from in-scope materials needs to be reviewed, to shift to less carbon intensive producers where possible. This should lead to discussions with supply chain partners to align on your GHG footprint strategy and the effects of CBAM on specific materials and products.
This can radically change the way of engaging with suppliers, leading to a complete overhaul of material sourcing, with new competitors throughout the value chain and manufacturers relocating their production.