German companies are struggling to meet CBAM requirements

German companies are struggling to meet the carbon emissions reporting requirements under the Carbon Border Adjustment Mechanism (CBAM), which has been in force since the third quarter of 2024. According to a recent survey by Deloitte, around three-quarters of companies are unable to accurately report emissions from their suppliers outside the EU.

The survey, conducted last autumn among 200 private-sector executives, found that more than half (53%) of the companies surveyed are unable to provide verified data on emissions from their foreign suppliers. Only 6% of companies said they could do so, while 21% can provide the data only partially.

“CBAM poses a huge challenge for companies, particularly when communicating with suppliers. As the end of the transitional period approaches at the end of 2025, pressure to introduce the necessary monitoring and reporting systems is mounting significantly,” said Michael Schäfer, a Deloitte partner and customs and international trade expert.

The survey also found that two-thirds of companies fear CBAM will negatively affect their competitiveness. Around 29% expect CBAM to lead to changes in supply chains, while only one-fifth anticipate actually switching suppliers as a result of the new regulations.

The main challenges cited by companies are the unavailability of required data (20%), a lack of transparency around costs and risks (16%), and insufficient knowledge of CBAM (11.5%).

From 2026, CBAM will require financial compensation through the purchase of certificates corresponding to the volume of emissions generated during the production of imported goods. Companies must therefore act quickly to ensure compliance with the new legislation or risk financial penalties.