Insight

With the definitive implementation of the Carbon Border Adjustment Mechanism (CBAM) regulation, customers are gradually placing more emphasis on suppliers who demonstrate environmental responsibility, which is why India-based Gala Precision Engineering Ltd is actively taking steps to ensure complete compliance and operational readiness.

Serving customers in more than 175 countries across Europe, USA and China, Gala Precision uses a combination of technical expertise, superior quality standards and a customer-centric approach to manufacture precision components such as technical springs, high tensile fasteners, bolts and nuts, which meet the demanding requirements of global industries. Additionally, a focus on continuous process improvement, investment in advanced manufacturing technologies and responsive customer service positions Gala as a trusted partner worldwide.

With the definitive period of CBAM commencing in January 2026, Gala is taking structured and proactive steps to ensure complete compliance. This includes implementing several critical actions such as mapping its supply chain to identify CBAM covered products and emissions intensive imports; engaging closely with suppliers to secure accurate and timely data on embedded emissions; as well as aligning internal systems and processes with the EU’s reporting and verification requirements. Gala is also building internal capabilities through dedicated training programmes and through partnering with external consultants for technical support.

“These investments are already delivering measurable benefits,” reports Gala. “Internally, we are operating with greater agility and data accuracy and for our customers, this translates into improved supply chain transparency and alignment with their sustainability objectives.” 

To strengthen this relationship with its customers, Gala has also introduced standardised data collection templates, aligned with CBAM reporting requirements, which cover material inputs, emissions factors, energy sources and production methods to ensure uniformity and completeness for suppliers. “Ensuring the accuracy of data supplied under CBAM is a priority,” comments Gala. “We have taken a collaborative and methodical approach with our suppliers, as well as maintaining regular communication and support to clarify expectations and maintain data integrity throughout the supply chain.”

Gala continues: “CBAM, once fully enforced, will significantly influence procurement strategies, especially for carbon intensive products such as steel and aluminium. The cost of embedded carbon will become a critical element in purchasing decisions likely reshaping global sourcing patterns. We are beginning to observe early signs of this shift and, while it has not yet led to widespread changes, sustainability and regulatory compliance are increasingly becoming competitive advantages, with customers gradually placing more emphasis on suppliers who demonstrate environmental responsibility.”

“CBAM is a significant milestone, but we view it as part of a larger transformation toward sustainability. We anticipate CBAM will accelerate the global push toward supply chain decarbonisation, making sustainability a standard expectation rather than an option,” underlines Gala. 

Further investments to broaden Gala’s own sustainability goals include an investment in an advanced data management tool to enable the automation of emissions tracking, as well as improve reporting accuracy. The company also plans to explore circular economy strategies, such as the reuse and recycling of materials, to support long-term environmental targets. Additionally, Gala is committed to conducting regular training and capacity building programmes for both internal teams and suppliers to keep pace with evolving regulations.

“We fully expect further regulations addressing sustainability and environmental impact will be introduced globally,” reports Gala. “We anticipate an expansion in CBAM scope to include downstream manufactured goods, plastics and even specific electronics or machinery, so our proactive investments and strategic focus will ensure we remain well positioned to navigate and thrive amid this evolving regulatory landscape.”