Viva.com and European Dynamics to Power EU Carbon Border Adjustment Mechanism Payments

Quick Summary

The EU Carbon Border Adjustment Mechanism (CBAM) payment system will be powered by a partnership between European Dynamics and Viva.com. This central platform will manage carbon certificate purchases across all 27 EU Member States, ensuring imported goods meet European carbon pricing standards to support decarbonisation goals.

How does the EU Carbon Border Adjustment Mechanism payment system work?

The EU Carbon Border Adjustment Mechanism payment system acts as the financial engine for the EU's landmark climate policy. By requiring importers of carbon-intensive goods—such as iron, steel, and aluminium—to purchase certificates, the system levels the playing field between EU and non-EU producers. Viva.com provides the regulated Account-to-Account payment infrastructure and SEPA connectivity necessary to handle high-volume transactions across the Eurozone.

• 27 Member States covered by a single unified payment gateway.
• Direct SEPA connectivity for seamless cross-border certificate purchases.
• Regulated bank accounts provided specifically for DG TAXUD and Member State authorities.

What role do European Dynamics and Viva.com play in the rollout?

The partnership combines eGovernment digital transformation expertise with modern fintech scalability. European Dynamics leads the architectural development and integration with existing EU customs and tax systems, ensuring mission-critical reliability for government operations. Meanwhile, Viva.com leverages its cloud-native banking stack to manage the flow of funds, providing the security and compliance required by the European Commission.

• Phase 1: Building and testing the platform through 2026.
• Phase 2: Live operations and ongoing support starting February 2027.
• 30 years of digital infrastructure experience brought by European Dynamics.

Constantinos Velentzas, CEO, European Dynamics, commented: "This award is a landmark achievement for European Dynamics and Viva.com, and a clear validation of our position at the forefront of mission-critical eGovernment IT systems. This project is among the most technically complex and strategically consequential systems DG TAXUD has ever commissioned. It demands both deep customs domain expertise and the highest standards of regulated payment execution and it is precisely this combination that makes our partnership with Viva.com so compelling. The support of CAPZA has enabled us to further strengthen our sustainability ambitions, making our contribution to strategic initiatives such as the EU Carbon Border Adjustment Mechanism fully aligned with our long-term commitment to decarbonisation."

What impact will this have on European trade and sustainability?

By automating the carbon cost collection, the platform ensures that the EU Emissions Trading System (ETS) is not undermined by carbon leakage. This digital infrastructure allows for the transparent tracking of carbon costs for imports like electricity, hydrogen, and fertilisers. The system is designed to scale, supporting thousands of businesses as they transition to more sustainable trade practices within the European market.

Harry Xenophontos, Chief Business Officer, Viva.com, said: "Our technology already connects payments, banking and financing for businesses in 29 European countries. Extending that same infrastructure to underpin one of the EU’s most significant financial systems shows how far Viva.com’s pan-European, cloud-based and AI-ready platform can scale. We are proud to have the opportunity to serve the European Commission through our close partnership with European Dynamics, bringing together our strengths in regulated payments and their expertise in public-sector systems."

FF NEWS TAKE:

This mandate is a massive win for Viva.com, proving that the EU Carbon Border Adjustment Mechanism requires the agility of a tech-first bank rather than a traditional legacy institution. By securing a central role in the EU's climate infrastructure, Viva.com moves beyond merchant services into the realm of sovereign-level payments. This deal significantly moves the needle, positioning fintech as the backbone of global environmental policy enforcement.