Management + Systems

By Gabriel Rozenberg, CEO and co-founder of CBAMBOO

There is a vast meteor hurtling through space, heading directly for Europe. On the side of the meteor is a sign that reads... ‘CBAM’. That is how important and how much of an impact we at CBAMBOO believe this technical regulation can have on the EU market.

With that in mind, we started working on software for the Carbon Border Adjustment Mechanism (CBAM) regulation at the start of 2023, when information on the CBAM regulatory system was scarce. At that time, it was hard for me and my business partner to even to figure out who our customers should be. However, two years later, if someone asks me which industry CBAM is hitting harder than any other, my answer is simple – fasteners. 

You probably already know why fastener distributors are so badly affected. There are two key issues. The first is the challenge of compliance. The EU’s CBAM is a hybrid rule, it’s a carbon regulation, a reshaping of the supply chain and a new kind of tax, all in one highly complex package. So, there’s a challenge for any manufacturing company to figure out its CBAM obligations – theoretically, pretty much any importer of metals and other primary goods is affected. 

However, fastener businesses are especially impacted because CBAM requires primary data from each supplier of imports, with an information flow that ultimately must be chased back to the original manufacturer of the products. Fastener companies have complex supply chains, typically involving thousands of companies, each of whom must be drawn into the web of disclosure and reporting. 

The second challenge is no less of a concern. In less than a year, CBAM will become a real tax, with importers having to pay for every tonne of CO₂ associated with their imports. In other words, the higher the total volume of imported metal goods that a company brings into the EU, the bigger their tax bill. It’s perfectly normal for distributors to import tens or hundreds of thousands of tonnes of CN Code 7318 fasteners into the EU each quarter – but with carbon prices of around €70/tonne and likely to rise, that means CBAM bills will be millions of euros each quarter. 

Few industries are hurt as much as fasteners. Manufacturers of complex goods typically have much lower import volumes, even though they may have as many orders of larger magnitude companies. 

Phil Matten, policy advisor of the British and Irish Association of Fastener Distributors (BIAFD), wrote in the September - October edition of Fastener + Fixing Magazine that “there is widespread bafflement about how to comply…” and warned that many businesses are still “in denial” of the challenges. The European Fastener Distributor Association (EFDA) has also been working strenuously to support the industry through CBAM. Despite that, Alexander Kolodzik, secretary general at EFDA, wrote in November - December edition of Fastener + Fixing Magazine that  “it remains extremely difficult to obtain the required information from all suppliers”.

This is where CBAMBOO can make all the difference. 

How CBAMBOO helps EU importers

Our customers have ‘CBAM headaches’ and it is our job to make them go away. How do we achieve this? It starts with an innovative 

software suite that we built from the ground up to precisely match the CBAM legislation – the CBAMBOO platform. The platform makes it easy for suppliers to provide data that is both compliant and complete. Alongside the software, our clients have access to our in-house customer support, delivered by a team with deep subject matter expertise.

Key features of the CBAMBOO platform that can help importers save time on their CBAM reports include: 

• Imports analysis: Starting with a list of customers’ imports, the CBAMBOO platform automatically analyses which goods are subject to CBAM.
• Supplier outreach: First, importers link goods to supplier companies; then the CBAMBOO platform reaches out by email to their contacts at those suppliers. Suppliers, also known as third country operators, can sign up to the platform and create installation data for their customers at no charge. 
• Audit trails and record keeping: Emails are sent to suppliers automatically and repeatedly over time, to ensure that there is a full audit trail. This means you can easily prove to the European Commission that you have made all efforts to get CBAM data, as required by the latest rules. Unless they are deleted, generated CBAM reports are kept permanently on the platform for future audits. 
• CBAM reports that match the EU’s Transitional Registry: CBAM reports are generated on the CBAMBOO platform in the XML format required for easy uploading to the CBAM Transitional Registry. In the past quarters, we have frequently seen the European Commission making technical adjustments to the Registry, which require us to rewrite the XML generator code. We constantly track these changes to ensure that our customers’ CBAM reports match up with the latest requirements, giving them peace of mind. 
• Unlimited everything: One simple annual subscription covers the entire company, all subsidiaries and unlimited supplier links –
  perfect for fastener businesses with complex supply chains. 

The results are tangible. In October 2024, the first reporting period in which actual emissions values were required by the EU, most suppliers around the world were barely aware of CBAM. Resistance to sending any information about their production processes was high. However, at CBAMBOO our customers were able to build a near-complete picture of their CBAM exposure. One customer used the platform to reach out to 40 suppliers, educate them about the new obligations and compile and audit their emissions information. Responsiveness was strong, 94% of their EU imports by weight were matched by CBAM data, sourced directly from the supplier. 

The CBAMBOO platform helps save our clients from chasing up suppliers and shuffling spreadsheets. Onboarding suppliers is a time consuming challenge – we give you that time back by handling much of the chasing ourselves, using a mix of automated tools and personal outreach. The platform is also easy to implement, requiring no integrations to get started. We can get businesses up and running on CBAMBOO with minimal effort.

Our free platform for the global supply chain

At the same time, the CBAMBOO platform is the best system available for non-EU suppliers to create CBAM data. Unlike the EU’s dreaded CBAM template, or any other Excel-based solution, the platform is visual, user-friendly and quick to master.  

• Carbon Flow: Instead of filling in cells in an endless workbook, suppliers draw their production diagram and add emissions data
  in an intuitive interface that we call ‘Carbon Flow’. This breakthrough approach to CBAM has been core to the CBAMBOO platform since day one. 
• Direct links to precursors and customers: The big problem with all spreadsheet-based solutions for CBAM is that suppliers need to get data from their own suppliers (known as precursors) before they can send out their own data – something that often means nothing gets sent at all. CBAMBOO solves this ‘chicken and egg’ problem by dynamically linking each company’s data together. Once precursor information is updated, the supplier’s data will be updated automatically and seamlessly.
• Did we mention it’s free? Basic access to the CBAMBOO platform for non-EU operators is free of charge, enabling suppliers to start compiling their CBAM data for customers straight away. Go to cbamboo.com/signup to get started. 

Your partner for the future of CBAM

At CBAMBOO, CBAM is what we do. In the past year we have assembled a group of experts with diverse skills who collectively have deep understanding of the disciplines needed to get on top of CBAM. CBAMBOO team members have backgrounds in sustainability, supply chain management, metal manufacturing, trade and customs, financial analysis and data science. 

With January 2026’s Definitive Period approaching, we’re already developing solutions for tax estimation, data verification, declarant authorisation and CBAM certificate purchasing – all needs that your business will face. Choose CBAMBOO as your partner to master these new requirements and stay ahead of future changes.

If your fastener business is facing CBAM challenges, we’d love to hear from you. You can also book a demo at your convenience at cbamboo.com/demo. You can follow us on LinkedIn, and visit cbamboo.com, to learn more. Finally, you can meet us in person at Fastener Fair Global in Stuttgart, in hall 7, stand 3350, near the Innovation and Sustainability Pavilion – the first time we’ve set-up a stand at a trade conference, and a sign of how serious we are about the fastener industry. Come and meet our team and see how CBAMBOO can solve the CBAM puzzle for your business.