KPMG AG Wirtschaftsprüfungsgesellschaft

Solution development for the reduction of CBAM emissions in the supply chain

Description of the company

KPMG is an organization of independent member firms with more than 275,000 employees in 142 countries and territories. In Germany too, KPMG is one of the leading auditing and advisory firms and has over 14,500 employees at 28 locations. Our services are divided into the following functions: Audit, Tax, Performance & Strategy, Deal Advisory and Consulting, each offering specialized services tailored to the specific needs of its clients. The Sustainability Reporting and Governance team, part of the Regulatory Advisory division, provides a broad range of services including advisory on sustainability and energy related topics. For example, the team supports clients in areas such as energy management, circular economy and reduction of greenhouse gas emissions.

Situation

CBAM (Carbon Border Adjustment Mechanism) is an EU regulation designed to complement the EU Emissions Trading System (EU ETS) by placing a carbon price on certain goods imported into the EU. The goal is to promote cleaner production methods and ensure that imported products face the same carbon costs as those produced within the EU, thereby ensuring fair competition. Currently, CBAM applies to carbon-intensive goods such as cement, iron and steel, aluminum, fertilizers, electricity and hydrogen.

Problem

Through structured and competent supply chain management and supply chain enablement, companies can obtain comprehensive and detailed information about the embedded emissions of their suppliers' products. Since embedded emissions have a direct impact on the number of CBAM certificates required and consequently affect the economic efficiency, this presents opportunities for importing companies:

- Identification of sustainable suppliers

- Identification of products with a high impact on the required CBAM emission certificates

- Targeted process optimization to reduce emissions generated during production processes

- Adjustment and/or modification of supplier contracts to reduce costs based on CBAM emission certificates

Aims of the project

The aim of the project is to identify measures for the reduction of emissions embedded in CBAM goods for selected production sectors. To enable a high degree of transferability, the focus is on cross-sectional technologies. The results are to be prepared in such a manner that they can be made available to our clients and their suppliers (e.g. through workshops or info material).

Scopes

Develop measures for foreign producers of CBAM goods to reduce CO₂ emissions along the CBAM-regulated supply chain, based on research and own calculations. Include example scenarios that show how non-EU companies in different industries could reduce their CO₂ emissions. High priority should be given to evaluating the measures from a qualitative and, if possible, quantitative perspective to provide companies in the affected sectors with practical and realistic measure lists. Use information obtained through own desk research as well as anonymized data from internal KPMG sources.

Target group (students)

Students with a focus on sustainability, energy economics, process engineering, energy technology, environmental engineering.

Dates
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Registration
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