Carbon accounting and management startup Greenly announced the launch of its new CBAM solution, aimed at enabling companies to comply with the Carbon Border Adjustment Mechanism (CBAM), the EU’s carbon tax regulation on imported goods, and to help reduce supply chain emissions and costs.

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 will equalize 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.

According to Greenly, the new platform will enable EU importers to automatically identify suppliers at risk for the new tariffs by integrating data with their financial and purchasing software. The platform’s purchasing AI enables importers to anticipate costs relating to imports, enabling them to determine costs or change suppliers altogether. In addition, the platform enables purchasing managers to reach out to suppliers with missing data to secure compliance or raise awareness on the need to minimize emissions.

Greenly added that the new platform will provide procurement departments with access to alternative supplier suggestions to minimize emissions and associated CBAM costs.

Alexis Normand, CEO of Greenly, said:

“Without timely action, CBAM will represent a major cost increase for importers of carbon-intensive goods. As it stands, it is also a major compliance burden, one we seek to alleviate through technology. At Greenly, we help companies cut through red tape, by automating reporting. More fundamentally, we identify low carbon suppliers to decarbonize supply chains effectively and effectively reduce costs.”

Founded in 2019, Paris-based Greenly provides solutions aimed at enabling companies to monitor, reduce and report emissions. The company’s solutions allow companies to budget decarbonization and reduce emissions in line with frameworks such as SBTi, help IT departments reduce data center-level emissions, and ensure that suppliers actively contribute to low-carbon roadmaps. The company in 2024 raised $52 million in a Series B funding round.