Regulations are shifting decarbonisation from being purely an environmental sustainability imperative to a decisive factor in business competitiveness.
Decarbonisation: From compliance to competitiveness
Carbon has a cost and that cost is rising. Emissions Trading Systems (ETS) were introduced in Europe 20 years ago: 2005 in the European Union (EU) and 2008 in Switzerland – the systems are linked since 2020. The gradual reduction in carbon allowances increased the carbon price and incentivised European organisations to decarbonise their production.
The EU ETS is now being extended to additional industrial sectors through the ETS2 as well as to imports through the Carbon Border Adjustment Mechanism (CBAM). In other words, not only European producers but also European importers can realise financial gains through decarbonisation.
We support our clients in navigating this evolving regulatory landscape and in reaping the environmental as well as competitive benefits of decarbonising their value chains.
European businesses face a dual challenge: rising costs for non-EU inputs and growing demand for products made in Europe. Strategic decarbonisation and supply chain choices will increasingly define competitiveness.
CBAM in a nutshell
The regulation is designed to level the competitive playing field between imported and domestically produced carbon-intensive products. By applying the EU ETS carbon price to imports, organisations have a financial incentive to decarbonise their supply chain.
Starting February 2027, organisations will need to purchase CBAM certificates to cover their imports during the calendar year 2026. The first annual CBAM declaration will be due in September 2027.
CBAM applies to EU-based organisations that import more than 50 tonnes of CBAM products per year.
CBAM currently covers around 550 products of aluminium, cement, electricity, fertilisers, iron and steel, and hydrogen. An extension is planned for 2028 to cover products further downstream including machinery, mechanical appliances, and precision instruments.
Our decarbonisation service offering
By combining regulatory expertise with hands-on implementation experience, we support our clients in turning decarbonisation from a compliance obligation into a source of competitive advantage.
- Compliance & reporting
- Emissions & cost optimisation
- Strategy & positioning
Compliance & reporting
- Assess CBAM impact under the current and future product scope
- Organise supplier engagement and the collection of actual emissions data
- Automate the preparation and submission of the annual CBAM declaration
Emissions & cost optimisation
- Calculate actual emissions at installation and product level
- Evaluate the financial trade-off between using actual data versus default values
- Estimate and reduce the cost of CBAM certificates over time through strategic purchasing and hedging
Strategy & positioning
- Understand interactions with other trade regulations (e.g. EU steel tariffs, UK CBAM) and industrial policies (e.g. the Industrial Accelerator Act)
- Refine customs, transfer pricing and indirect tax set-up to align with CBAM
- Develop CBAM-compatible decarbonisation transition plans that align industrial strategy, funding opportunities and regulatory expectations
Your Benefits
Lower compliance risk and effort
Structured processes, automation and robust data reduce the risk of CBAM errors, penalties, and last‑minute firefighting.
Reduced emissions & CBAM cost
Transparent emission calculations and targeted reduction measures cut both the carbon footprint and the long‑term cost of CBAM certificates.
Stronger competitive positioning
Proactive use of CBAM and related regulations turns decarbonisation into a differentiator in pricing, customer relationships, and market access.
Get in touch
Discover how we can help you shift decarbonisation from a regulatory requirement into a driver of competitiveness.
Contact us
Erik Steiger
Dora Forgacs
Dr Sebastian Klotz
Léa Handgraaf