With support for the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM), Business Central helps you track and manage the carbon footprint of imported goods. The system automatically calculates carbon-related costs based on the origin of your products and EU carbon pricing rules by using the Carbon Pricing page and fields on the Item Card page, such as:

Source of Emission Data
Emission Verified
CBAM Compliance

The system monitors emission data, verifies compliance, and ensures that all purchases reflect the required carbon adjustments. This mechanism helps you avoid regulatory risks and gives you clear insight into your sustainability costs for each product and vendor.

Use the extended producer responsibility (EPR) feature to track product materials and apply the right environmental fees to sales. Whether your products include packaging, electronics, or batteries, the system calculates fees like collection and recycling based on the material composition and weight. To set up this feature, use the EPR Material Setup and Item Material Composition pages, along with extra fields on the Item Card page and sales documents. These tools help you comply with local regulations, improve cost accuracy, and support environmentally responsible product design and reporting.

Both features use the Excise Taxes feature to enable the necessary calculations. However, these features don't support all documents that some authorities require.