What will CCTS and CBAM
cost your business?
A 60-second cost estimator for auto, tractor and construction equipment component manufacturers. See your exposure in rupees. Get a clear mitigation checklist for your procurement team.
Two carbon cost pressures, arriving simultaneously
Most auto component manufacturers are tracking neither. This tool sizes both in 60 seconds, in rupees, not jargon.
CCTS: your upstream costs
India's Carbon Credit Trading Scheme places binding emission-intensity targets on steel and aluminium producers from FY25-26. Your suppliers face real compliance costs that could pass through in pricing. This is a domestic RM cost issue regardless of whether you export.
CBAM: your EU margins
The EU's Carbon Border Adjustment Mechanism entered its definitive phase in January 2026. If you export steel or aluminium content to the EU, directly or through your customers' supply chains, CBAM certificate costs are already arriving in pricing conversations and RFQs.
Mitigation is real and achievable
CBAM default emission values (used when verified data isn't available) are typically 30–60% above actual emissions for efficient Indian producers. Suppliers with verified data can pass through a lower figure. Procurement teams who act now capture the savings; those who don't pay the default penalty.
The verified-data opportunity: companies that secure mill-specific, third-party-verified emission data from their key steel and aluminium suppliers can significantly reduce their CBAM exposure. Getting that data requires 12–18 months of supplier engagement. The window to act before the September 2027 declaration deadline is narrowing.
From inputs to action in 60 seconds
No spreadsheets, no carbon expertise needed. Three steps to your cost estimate and mitigation checklist.
Enter your business details
Sector, annual turnover, raw material mix (steel/aluminium split), and EU export share. Takes under a minute. Estimates are fine, no precise data needed.
Get your cost exposure
Instant CCTS pass-through risk score and CBAM cost estimate for 2026, 2027, and full steady-state. All in rupees, using India-specific official emission default values.
Get your mitigation report
Leave your email and we'll send a detailed PDF with methodology, data sources, and a 16-point readiness checklist for your procurement and supply chain team.
Built for Indian component manufacturers
Not a generic carbon calculator. Calibrated specifically for the raw material mix, export patterns, and supply chain structure of India's auto component ecosystem.
Automotive Component Manufacturers
Tier 1 and Tier 2 suppliers to passenger vehicle and commercial vehicle OEMs. Steel-heavy RM mix, growing EU export exposure through OEM global platforms.
Tractor & Agricultural Equipment
Component suppliers for domestic and export tractor/agri-equipment programs. High forging and casting content, steel and cast iron dominant RM base.
Construction Equipment Components
Structural and hydraulic component suppliers. Heavy steel and aluminium content, increasing EU/global OEM supply chain participation.
Your sector not listed? Contact us for a sector-specific assessment.
What you're probably wondering
Answers to the questions procurement heads ask before using the tool.
Not directly. CBAM currently covers primary steel and aluminium (and cement, fertilisers, hydrogen). However, the EU has proposed extending CBAM from 2028 to cover steel and aluminium-intensive downstream products including auto components, fasteners, and machinery. And even today, if your EU customers re-export your components in CBAM-covered supply chains, the pressure is reaching you indirectly through pricing and RFQ requirements. The time to get your data in order is now, not 2027.
India's Carbon Credit Trading Scheme (CCTS) places binding greenhouse gas emission-intensity targets on nine sectors, including iron & steel and aluminium, the raw materials at the core of auto component manufacturing. Suppliers in these sectors face compliance costs that could be passed through to buyers via pricing. This calculator estimates that indirect exposure for your business, regardless of whether you export to the EU.
It uses India-specific default emission values from Annex I of EU Implementing Regulation 2025/2621, and CCTS emission factors based on India FY23-24 industrial baseline data. The EU carbon price defaults to the European Commission's first official CBAM reference price (April 2026: €75.36/tCO2e). It's a screening-level estimate, accurate enough to size the risk, prioritise supplier conversations, and build a business case for deeper analysis. For binding figures, you'll need verified, installation-level emissions data and qualified compliance advice.
Three things your procurement team can do: (1) Ask your key steel and aluminium suppliers for their verified emission factor data. Suppliers with lower actual emissions can pass through a lower CBAM figure than the default, directly reducing your EU customer's cost and strengthening your competitive position. (2) Confirm the CN/HS code classification for components you export to the EU. Misclassification is common and can result in unnecessarily high default values being applied. (3) Track your suppliers' CCTS compliance position. Suppliers with captive renewable energy or strong efficiency may be net CCC sellers, meaning minimal or zero pass-through risk to you.
Yes, completely free, no registration required. If you want the detailed PDF report with full methodology, data sources, and a 16-point readiness checklist, leave your email and we'll send it. This diagnostic tool is the entry point to Zentrava's CarbonCost suite. The upgrade path is a part-level and supplier-level diagnostic based on your actual BOM and supplier data, which is where the real numbers come from.
If your exposure looks significant, the next step is a CarbonCost diagnostic: mapping your actual bill of materials against CBAM scope, identifying which suppliers need to provide verified emission data, and building a cost-impact model using your real RM spend and export volumes rather than the illustrative figures in the free calculator. Write to contact@zentrava.co to discuss what data would be needed to get started.
This tool is for awareness and planning purposes. It does not constitute regulatory, legal, tax, or compliance advice.