On May 23, 2025, Ottawa-based Assent launched a new solution to help manufacturers navigate the EU’s Carbon Border Adjustment Mechanism (CBAM), a regulation tackling carbon leakage by pricing emissions in imported goods. With CBAM’s full implementation looming in 2026, Assent’s platform uses AI and automated tools to simplify compliance, addressing the fact that fewer than 15% of manufacturers have the data needed for CBAM’s strict reporting. Integrating tech from Forward Earth, the solution calculates embedded emissions, maps supply chain data, and minimizes financial risks. But in a complex global trade landscape, can it bridge the gap for manufacturers facing tight deadlines and reluctant suppliers?

What CBAM Demands

CBAM, adopted in 2023, levels the carbon pricing field between EU and non-EU producers, targeting high-emission sectors like cement, steel, aluminum, fertilizers, hydrogen, and electricity. Importers must report embedded emissions—direct (from production) and indirect (from electricity use)—and, from 2026, buy CBAM certificates priced to match the EU Emissions Trading System (ETS), currently €70-100 per tonne of CO2. Non-compliance risks fines of €10-50 per unreported tonne, escalating to €100 per tonne for certificate shortfalls post-2027.

The regulation’s transitional phase (2023-2025) requires quarterly reports, with a shift to primary data mandatory since July 2024. A February 2025 Omnibus package introduced a 50-tonne threshold, exempting 90% of importers (mostly SMEs) but retaining 99% of import emissions. The annual declaration deadline moved to August 31, and certificate purchases were delayed to 2027, easing financial pressure. Still, tracing emissions across multi-tier supply chains—where 95% of data lies outside a company’s control—remains a hurdle, especially for non-EU suppliers unfamiliar with CBAM’s methodology.

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Assent’s Solution: AI-Powered Compliance

Assent’s platform tackles these challenges with:

• Embedded Carbon Calculator: Built with Forward Earth’s AI, it automates emissions calculations per CBAM’s methodology, ensuring accuracy for direct and indirect emissions. Suppliers input data like fuel use and electricity consumption, avoiding default values that trigger fines.

• Supply Chain Mapping: The system stores and links supplier emissions to products, enabling precise reporting and product carbon footprint tracking for competitive edge.

• Multilingual AI Support: Guides non-EU suppliers through data entry, addressing language barriers and low ESG maturity—critical as 80% of North American suppliers lack robust reporting, per Assent’s Devin O’Herron.

• Regulatory Expertise: Embedded guidance ensures compliance with CBAM’s evolving rules, like the new digital CBAM Registry launched March 31, 2025.

“Spreadsheets can’t handle this,” said Assent’s Catherine Cormier. “Our solution automates data collection and empowers suppliers to meet regulatory demands at scale.”

The platform reduces compliance costs—potentially $10,000-$50,000 per report for complex supply chains—and mitigates fines. By centralizing data, it also helps importers respond to customer sustainability demands, aligning with trends like the EU’s Ecodesign for Sustainable Products Regulation.

Why It Matters

CBAM’s scope is vast, covering 50% of ETS-sector emissions by 2034. It drives global decarbonization by penalizing high-carbon goods, but compliance is daunting. Importers need installation-level data, often from suppliers several tiers removed, who face no direct fines but risk losing EU market access if uncooperative. Assent’s solution bridges this gap, turning compliance into a market advantage. For example, low-carbon steel producers in Canada could gain 5-10% market share in the EU, where CBAM adds $200-$300 per tonne to high-carbon imports.

This aligns with broader climate tech trends. Converge’s $22 million raise for AI-driven concrete decarbonization and JPMorgan’s $90 million CO2 removal deal show investment in scalable solutions. Yet CBAM’s granular data needs—unlike scope 3 estimates—set a new standard, with only 15% of manufacturers ready, per Assent. The platform’s ability to educate suppliers and streamline reporting could save firms 20-30 hours per quarterly report, per industry estimates.

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Challenges and Risks

CBAM compliance hinges on supplier cooperation, but non-EU firms, especially in Asia (60% of CBAM goods), often lack resources or awareness. Assent’s AI support helps, but training suppliers takes months, and 70% of global manufacturers still rely on manual processes, per PwC. Inaccurate data risks overpaying for certificates or under-reporting, with fines hitting €50,000 for 1,000 unreported tonnes. The EU’s simplified registry and 50% quarterly certificate holding (down from 80%) ease burdens, but the 2026 deadline looms.

Competition is another hurdle. IntegrityNext and CarbonChain offer similar CBAM tools, with IntegrityNext emphasizing automated XML reporting and CarbonChain focusing on metals. Assent’s edge lies in its Forward Earth integration and multilingual support, but market share depends on adoption speed. Policy risks also loom—U.S. exporters, lacking a federal carbon price, face full CBAM costs, and proposed U.S. border adjustments remain stalled, potentially raising costs 10-15% for American firms.

What’s Next?

Assent aims to onboard 500 manufacturers by 2026, targeting 20% of CBAM-affected importers (9,000 firms post-threshold). Its platform could save 1 million tonnes of CO2 equivalent in overreported emissions, avoiding $70 million in excess certificate costs. The EU’s recognition of third-country carbon taxes (e.g., Canada’s $170/tonne by 2030) will further incentivize low-carbon supply chains, boosting demand for Assent’s tech.

Global CBAM-like policies are emerging—UK by 2027, Canada and Japan in discussion—potentially creating a $50 billion compliance market by 2030. Assent’s solution, if scaled, could capture 10%, especially in North America, where ESG reporting lags Europe. For now, it’s a lifeline for manufacturers racing to comply.

“Carbon data is now money,” Cormier said. “We’re helping firms turn compliance into opportunity.”

As CBAM reshapes trade, Assent’s platform offers a path to navigate its complexity. Success depends on supplier buy-in and outpacing rivals in a carbon-priced world. Will it redefine supply chain sustainability, or struggle against global inertia?

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