Insight

As a leading importer of fasteners for distributors in Europe, Fastbolt has collaborated closely with its suppliers to ensure the timely and accurate transmission of all required data in-line with the full introduction of the Carbon Border Adjustment Mechanism (CBAM) regulation in 2026.

Offering a specialised range of bolts, screws, nuts, washers and threaded rods, available both from stock and via direct container shipments, what sets Fastbolt apart in the market is its clear sales focus on selling exclusively to distributors, as well as its strength in offering logistic solutions and the high-level of digitalisation as part of the business’ approach. 

In order to stay at the forefront of the industry, Fastbolt Schraubengroßhandels GmbH has looked to apply this clear focus to its implementation of CBAM, with the company developing in-house a dedicated IT solution to capture, process and integrate emission data into the company's’ digital infrastructure.

“Digital solutions are at the heart of Fastbolt, which is underlined by our FBonline ordering and business platform,” highlights Christoph Uhling, product manager at Fastbolt and in charge of CBAM. “Developed entirely in-house, FBonline combines functionality with ease of use, providing almost 2,000 distributor customers in Europe with a wide range of tools designed to simplify workflows and create real value on a daily basis. The combination of product expertise, and digital know-how, helps us and our customers to stay ahead in a highly competitive market, which is why we have looked to take the same integrated approach when it comes to CBAM and collecting the relevant data.”

Christoph continues: “It is currently difficult to make a reliable forecast regarding CBAM related market developments in the future, as key figures required for precise cost calculations remain still uncertain. However, based on the information available today, we expect import prices to rise significantly, particularly as free allowances are gradually phased out by 2034. Having said this, our sourcing strategy has not yet been affected at this point, as too many areas of CBAM remain unclear. Certain aspects of the regulation are very hard to implement as originally intended, and seem more theoretical than applicable in ‘real world’ situations, especially for complex goods such as fasteners. We hope that necessary changes to the regulation will still be made, for instance the entire process being simplified, and that we will receive a clear and realistic roadmap with all relevant information, including the figures required to calculate the cost-effective emissions for purchasing CBAM certificates at some stage.”

Fastbolt responded to the announcement of fasteners being part of CBAM at an early stage and implemented comprehensive measures to ensure compliance. “Thanks to our long-standing and trusted relationships with our suppliers in the Far East, as well as our presence in China through Fastbolt Trading Shanghai, we are positioned as close as possible to the source of CBAM related information in the supply chain – from manufacturer to importer,” points out Christoph. “This direct access, without the involvement of intermediaries, enables transparent communication and reliable emission data.”

Fastbolt has also fully briefed its suppliers on CBAM and requires them to submit all necessary data in-line with the regulation. “For now, we conduct cross-checks and plausibility reviews to ensure the reliability of the information provided. At the same time, we are also fully aware of the difficulties many of our supply partners are facing,” reports Christoph. “For medium and smaller sized manufacturers outside of the EU, compliance with CBAM creates huge challenges, especially when production processes are partially outsourced and subcontracted. Capturing and reporting precise and reliable emission data of the entire production process will just not be feasible for some. This is also the reason why we are very much afraid to lose some important supply partners in the future.”

Christoph adds: “For us it is very obvious that CBAM has not been designed for complex downstream products, such as fasteners, but could work well for upstream products such as crude steel. Therefore, we believe that if fasteners were still to be kept within the defined scope of CBAM products, an exclusion of the emissions related to the actual production process of fasteners would be absolutely necessary.”

Whilst preparing for CBAM has been challenging, Fastbolt believes that it is all part of the move towards sustainability, which is a key priority for the business. “We are continuously investing in environmentally responsible initiatives to reduce our ecological footprint,” reports Christoph. “For example, we have made significant investments within our infrastructure to reduce energy consumption and CO₂ emissions overall. We also operate a photovoltaic system to significantly lower our reliance on grid electricity and have transitioned our vehicle fleet to electric vehicles, supported by charging stations on our premises. There are currently many areas of activity for us when it comes to sustainability and CBAM is now one of them directly connected to our trading business.”

Christoph underlines: “Sustainability is becoming increasingly important, both within our organisation and for our distributor customers and downstream consumers. We support initiatives aimed at reducing environmental impact, as long as they are practical and aligned with market realities.”