Insight

With the start date of the definitive period for the Carbon Border Adjustment Mechanism (CBAM) regulation in January 2026, Japan-based SAIMA Corporation has completed a period of knowledge gathering, as well as working alongside the Japanese government, to ensure it is fully ‘CBAM ready’ and compliant with regulations. 

Mami Hamaguchi, marketing leader and sales department responsible for Europe and international business at SAIMA Corporation, outlines: “We quickly recognised that whilst in Japan only a limited number of companies in the fastener industry are dependent on the EU market, making the overall impact on the industry relatively small, for companies such as us, the impact will be significant. The amount of information available in Japan was relatively limited compared to other countries, which meant we needed to educate ourselves.”

SAIMA therefore conducted many overseas business trips and is continuing to work with the Japanese government to gather more information and understand CBAM requirements. The Japanese government are outsourcing the entire fastener industry’s response to a private consulting firm specialising in environment and energy. This private company has experience in CO₂ calculation, and Life Cycle Assessment (LCA), and has been commissioned by the government to support industries such as fastener manufacturing with CBAM compliance. The company is providing emission factors, calculation tools and templates based on typical fastener production processes, to make it easier for companies to calculate emissions accurately and efficiently. 

“CBAM compliance is especially challenging for SMEs, but the support from this specialised company has clarified the required steps,” highlights Mami. “However, coordination remains a tricky task due to the many different companies involved in fastener production, including steel, wire, heat treatment and surface treatment manufacturers. Whilst the government is taking the lead, data from upstream suppliers, including steel mills, is still not readily available at this stage.”

As a result, the information being provided is based on guidelines from relevant ministries and complies with the latest standards. However, due to confidentiality obligations and other factors, default values may sometimes be used. 

Mami underlines: “We fully intend to confirm the accuracy of GHG figures, including direct and indirect emissions, through ongoing discussions with our clients. There are also various opinions within the screw industry on how much more detailed data is required. We would greatly appreciate it if the European Commission could provide more specific guidance on the exact requirements.”

Looking ahead, SAIMA is also focusing on equipment upgrades, not solely for CBAM compliance, but as part of broader improvements. “We believe that CO₂ reduction is only one aspect of environmental responsibility, so we plan to invest in other areas too, in order to continue to meet our customers’ requirements,” comments Mami. “We strongly believe that CBAM will expand and, at the very least, see its requirements change every year, as well as new environmental regulations being introduced in the future. We therefore must make sure we stay ahead and informed of all developments. It’s clear that whether or not a company is able to comply with these regulations will have a direct influence on procurement decisions, with the potential for our customers’ sourcing strategies to shift as a result.”