CBAM: A Game-Changer for Decarbonization

Brought to you by RESET Carbon and Redshaw Advisors, this webinar recording will guide your organization in understanding the impacts of CBAM across global supply chains, and unlocking the strategic opportunities it will bring for business.

Topics included the price impacts to key commodities such as steel and aluminium, methods for engaging suppliers to reduce costs associated with CBAM, and strategic preparation for CBAM implementation. 

The conversation was approached with a China lens, a market that will be impacted most directly by CBAM. For many corporates China represents one of the largest and highest impact markets in terms of energy consumption and emissions and is one of the most challenging markets. European companies typically have limited transparency into their complex Chinese supply chains and difficulties in sourcing supplier data. So, how can your organization overcome these hurdles and make the most of the opportunity? 

Watch back as CBAM expert Dan Maleski from Redshaw Advisors joins our very own Sam Nunn to discuss the complexities and opportunities of CBAM.

Key Takeaways:

  • Importers must monitor and report on embedded carbon in their products from July 2024, driving supplier engagement and emissions reduction.
  • CBAM will bring price parity to green materials, incentivizing supply chain decarbonization.
  • The EU anticpates a ~12% reduction of CBAM covered goods imported into the EU, by 2030
  • Semi-finished goods imported, such a bolts, pipes, screws, panels, will be exposed to CBAM, for specific information, please check the CN goods list on the CBAM website.
  • Steel and Alumnium imported from India and China goods could increase by 60-100% by 2034, as a direct result of CBAM
  • Both India and China are currently lacking an effective cost of carbon, that would significantly limit CBAM costs for exporters of those jurisdictions into the EU
  • Companies can minimize CBAM exposure through supplier engagement and material changes.
  • In the short-term, companies should focus on gathering real supplier data, and identifying hotspot suppliers with whom to prioritize decarbonization efforts.
  • In the longer term, companies should think about shifting volumes to lower-carbon suppliers, as well as redesigning products to reduce emissions.
  • Leveraging CBAM is a major financial incentive to kickstart carbon emissions reduction in the supply chain, contributing to global decarbonization efforts .

Next Steps

If you are looking for boots on the ground experience with engaging your supply chain in China and navigating both the requirements and opportunities that CBAM presents, then connect with our team here.

To learn more about understanding and mitigating CBAM costs for a competitive advantage, connect with UK based Dan Maleski at Redshaw Advisors to continue the conversation.