Submitting Your CBAM Report: Essential Insights and Guidance for Exporters

As the deadline for the last quarter CBAM (Carbon Border Adjustment Mechanism) report approaches on July 31, 2024, it's crucial for exporters to understand the nuances and requirements of this reporting period. This is the final phase where default values can be used, marking a significant transition towards more accurate and supplier-specific data in future reports. Let's delve into the essential details, provide a comprehensive checklist, and explore how to prepare effectively for the upcoming changes.

Current Reporting Period: Last Use of Default Values

For the last quarter ending July 31, 2024, exporters can still rely on EU default values for their CBAM reports. This is the final period where general data can be described in CBAM reporting. From the next reporting period onwards, actual emission values from suppliers must be used, marking a significant shift towards more precise and verifiable data.

Upcoming Changes from July 1, 2024

Starting from July 1, 2024, importers of CBAM-regulated products will need to report emissions based on actual data obtained from their suppliers. This transition emphasises the importance of accurate emission tracking and reporting throughout the supply chain. Exporters must ensure their suppliers are prepared to provide detailed emission data to comply with the new requirements.

Why This Transition Matters

This shift from default values to actual supplier data is critical for enhancing the accuracy and integrity of carbon reporting. It ensures that the carbon footprint of imported goods is correctly assessed, promoting transparency and accountability. For exporters, this change necessitates a proactive approach to engage with suppliers, ensuring they understand the new requirements and are ready to provide the necessary data.

Are You Prepared? A Checklist for Submitting Your CBAM Report

To help exporters navigate the CBAM reporting process effectively, we've created a comprehensive checklist:

1. Understand the Reporting Requirements:
2. Engage with Suppliers:
3. Data Collection and Verification:
4. Utilise EU Default Values (for this period only):
5. Prepare for Future Reporting:
6. Submit Your Report:

Engaging with Suppliers: The Key to Successful Reporting

Proactively engaging with your suppliers is crucial to ensure they understand and comply with the new CBAM requirements. This involves clear communication, training, and ongoing support. Suppliers need to be aware of the specific data they must provide and the importance of accuracy in reporting.

Responding to Buyer Inquiries

You may start receiving emails from your European buyers asking for CBAM data related to the goods you supplied in Q2 2024. Be prepared to respond promptly and accurately, providing the necessary emission data. This not only helps in compliance but also strengthens your relationship with buyers who are keen on maintaining sustainable supply chains.

The Future of CBAM Reporting: Accurate Data from Suppliers

From the next reporting period onwards, the use of actual emission data from suppliers will be mandatory. This marks a significant change in the CBAM reporting landscape, necessitating a shift from general default values to specific, verifiable data. Exporters must ensure their suppliers are ready to provide accurate emission data, which will be critical for compliance and maintaining market access.

Practical Steps for Transitioning to Supplier Data

1. Inform and Educate Suppliers:
2. Establish Data Collection Protocols:
3. Implement Data Verification Processes:
4. Utilise Technology:

The Role of CleanCarbon.ai in CBAM Reporting

As a leading provider of CBAM reporting and consulting services, CleanCarbon.ai offers comprehensive solutions to help exporters navigate the complexities of CBAM compliance. With a proven track record of generating hundreds of CBAM reports for over a hundred clients exporting to Europe, CleanCarbon.ai is the trusted partner for ensuring accurate and timely CBAM reporting.

Conclusion

As the deadline for the last quarter CBAM report approaches, it's essential for exporters to understand the requirements and prepare for the upcoming changes. Engaging with suppliers, collecting accurate data, and utilising the expertise of partners like CleanCarbon.ai can ensure compliance and maintain market access. The transition to actual supplier data marks a significant step towards more accurate and transparent carbon reporting, contributing to global efforts in combating climate change.

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References

1. European Commission: Carbon Border Adjustment Mechanism
2. CleanCarbon.ai: CBAM Reporting and Consulting Services