Supply chain sustainability management solutions provider Assent announced the launch of a new solution aimed at helping manufacturers to comply with the regulatory requirements of the EU’s Carbon Border Adjustment Mechanism (CBAM).

Ottawa-based Assent provides systems to help manufacturers collect and manage the supply chain data needed to meet environmentally and socially responsible product standards and regulations. According to Assent, the new solution will enable users to easily calculate embedded supply chain carbon emissions, meet CBAM requirements, and respond to customer sustainability demands.

Adopted in 2023, and coming into force in 2026, CBAM was established to avoid “carbon leakage,” a situation in which companies move production of emissions intensive goods to countries with less stringent environmental and climate policies. CBAM is aimed at equalizing the price of carbon paid for EU products operating under the EU Emissions Trading System (ETS) – the EU’s internal cap and trade carbon pricing mechanism – with that paid for products produced in other countries, with companies that import into the EU required to purchase CBAM certificates in order to make up the difference.

As part of the regulation, importers are required to report on the embedded emissions of goods imported into the EU, including direct emissions, and indirect emissions, with information including the electricity consumption of the production process.

CBAM is undergoing proposed changes as part of the European Commission’s ongoing Omnibus package aimed at reducing the sustainability reporting and regulatory burden on companies. The most significant update to CBAM under the Commission’s proposals is the introduction of a new 50 tonne threshold, eliminating 90% of importers – primarily small and medium-sized enterprises – from the scope of the regulation. Despite removing approximately 182,000 importers, however, the Commission said that more than 99% of emissions from imports will still be covered by CBAM.

Currently, according to Assent, fewer than 15% of manufacturers have the unified data needed to meet the emerging reporting requirements. The new solution includes a built-in carbon emissions calculator that enables suppliers to easily provide the data companies need to comply with CBAM’s strict methodology. It also enables manufacturers to store and map their supplier emissions data to their products within Assent’s network, helping companies minimize financial risk while gaining a competitive advantage by building a foundation for product carbon footprint tracking, the company said.

Catherine Cormier, Chief Product Officer at Assent, said:

“Manufacturers are under extraordinary pressure to quantify and report embedded carbon emissions across complex global supply chains, and spreadsheets and legacy tools simply can’t handle the work. By embedding in-product calculation within the enhanced CBAM solution, we’re empowering manufacturers and their suppliers to streamline data collection, automate emissions calculations, and confidently meet evolving regulatory demands. This marks a new standard in how primary emissions data is gathered and leveraged at scale.”

The new solution includes foundational elements such as embedded regulatory expertise and multi-lingual supplier support, Assent said. The solution integrates technology from German-based company Forward Earth, a developer of AI-driven carbon management software, to deliver the in-product calculator, and an AI support feature to answer questions and guide suppliers through the carbon calculation process, the company added.