The Problem
With the EU's Carbon Border Adjustment Mechanism (CBAM) coming into force in January 2026, non-EU producers and EU importers will face stringent requirements to report and verify emissions across their supply chains. Importers will need to collect primary emissions data and pay carbon taxes based on accurate and verifiable reporting. Failure to comply can result in heavy fines, but today's systems for tracking emissions are inefficient and often unverifiable. CBAM not only presents challenges, but also a significant administrative burden for companies at both ends of the supply chain. Non-EU manufacturers must adapt to accurately collect and report emissions data, while EU importers face penalties for inaccuracies in submitted reports. Complexity increases as the scope of CBAM expands over time, initially to include raw materials such as cement and aluminium, and later to include finished goods. By 2030, CBAM could affect more than €90 billion of traded goods annually. Beyond CBAM, there are currently more than 100 regulatory frameworks setting limits on GHG emissions for industries, mainly through cap-and-trade schemes or carbon tax systems. All of these systems need standardized and verifiable emission data collection methods while minimizing the bureaucratic burden. With the cross-border nature of many of these systems an automated and efficient emission collection system is crucial to overcome cultural, language, and information barriers to ensure a level playing field for all participants, regardless of their geographical location, reduce green-washing and provide trust.

The Solution
ARTEM connects non-EU manufacturers and European importers for accurate carbon emissions reporting - simplifying verification and compliance processes. To make this possible, ARTEM provides an integrated solution with proprietary hardware and software elements to enable real-time, tamper-proof emissions tracking that is certified to both EU and Chinese standards: Software: A cross-border emission data collection platform helping companies comply with mandatory data submission requests like CBAM. It is designed for both EU and non-EU users, emphasizing regulatory compliance, evidence-based data submission, and user-friendly design. Hardware: A Continued Emission Measurement System (CEMS) that measures GHG emissions in real-time through sampling of flue gas in short intervalls. For some industries like fertilizer production, CEMS is mandatory. For others, it is preferred due to its transparency, automation, and traceability. The integration of both software and hardware elements ensures precise accountability and adaptability to specific production processes and methods. It minimizes human errors, creates a robust data infrastructure, enables cost-effective compliance for manufacturers and freight forwarders and facilitates the convergence of different carbon prices into a single, global carbon price. Initially focused on China, the world's largest CBAM-affected market, ARTEM plans to expand into India and other emerging markets, creating a global infrastructure for emissions tracking and carbon pricing. They can be used in a wide range of industries, including those with tight cost margins.

Why we invested
We believe that ahead of the implementation of the CBAM regulation in Europe, ARTEM is in a unique position to address the growing complexity of carbon regulation, accounting and pricing. Their integrated and automated solution together with their unmatchable access to the Chinese market lays the foundation for ARTEM to become a global carbon accounting and pricing infrastructure leader. By starting with goods produced in China - the largest manufacturing hub affected by CBAM - and aligning with local and international standards, ARTEM bridges a critical gap between manufacturers and importers. This early focus will not only allow them to navigate one of the world's most challenging markets, but also provides a blueprint for scaling in other high-growth regions such as India and to cover a wider range of commodities and industries. The founder´s team strong personal ties and experiences with large Chinese conglomerates and state-owned enterprises give them an unmatchable access to the Chinese markets that potential competitors are hard to match. And with the team´s vision, mindset and energy we are fully confident that they are set up for success.
