CCTS & CBAM Exposure Calculator
In one minute, find out whether India's domestic carbon market (CCTS) or the EU's carbon border tax (CBAM) could affect your cost structure — and roughly by how much.
This tool is calibrated for automotive, tractor, and construction equipment component manufacturers only. Contact us for a sector-specific assessment at contact@zentrava.co.
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CCTS Pass-Through Risk
CBAM Exposure
Note 1: this uses a single representative default for steel/aluminium — actual values vary by CN code. E.g., flat-rolled steel (used above, 4.708 tCO2e/t) vs. fasteners like bolts/screws (CN 7318, ~34% higher) — your real exposure may differ.
Note 2: at full phase-in (2034), steady-state exposure on today's volumes: —.
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We'll email you a detailed PDF breaking down both calculations, material-level data sources, and a checklist for getting CBAM/CCTS-ready — plus an offer for a free 30-minute CarbonCost Readiness call with our team.
Know your number. Now find the gaps.
This calculator gives you your overall cost exposure. The next step is understanding it at the part and supplier level — which specific parts are in CBAM scope, which suppliers need verified emission data, and where your biggest procurement gaps are.
Zentrava's Supplier Carbon Data Readiness tracker lets you upload your parts list, map each part against CBAM scope, and identify exactly which suppliers are holding back your exposure reduction. First 5 parts free.
Try the Supplier Readiness Tracker →CCTS & CBAM — frequently asked questions
What is CBAM, and does it apply to Indian auto component exporters?
CBAM (Carbon Border Adjustment Mechanism) is the EU's carbon border tax on imports of carbon-intensive goods — currently iron & steel, aluminium, cement, fertilisers, hydrogen, and electricity. If you export steel or aluminium components (or raw steel/aluminium) to the EU under the relevant CN codes, CBAM can apply to those shipments. The EU has also proposed extending CBAM from 2028 to ~180 additional downstream products including machinery, appliances, and fasteners — which could bring many auto components into scope that aren't covered today.
What is CCTS, and is my company directly obligated under it?
CCTS (Carbon Credit Trading Scheme) is India's domestic carbon market. As of mid-2026, it directly covers nine sectors — aluminium, cement, chlor-alkali, pulp & paper, petroleum refining, petrochemicals, textiles, fertiliser, and iron & steel — with binding emission-intensity targets for FY25-26 and FY26-27. Automotive, tractor, and construction equipment component manufacturing are not among these nine sectors, so most component makers are not directly obligated. However, your steel and aluminium suppliers likely are — and any compliance costs they face could be passed through to you via pricing.
If CCTS doesn't apply to my sector, why should I care?
Because your raw material suppliers (steel and aluminium producers) are CCTS-obligated entities with binding targets. If they face compliance costs — buying Carbon Credit Certificates (CCCs) to cover shortfalls — they may pass some of that cost on to you through pricing. This calculator estimates that pass-through risk based on how much of your raw material spend is steel/aluminium, even if you have zero EU exports.
I don't export to the EU — does any of this affect me?
CBAM specifically only applies to goods entering the EU, so with 0% EU export share, CBAM exposure is not applicable. But CCTS pass-through risk (above) is a domestic cost-structure issue, independent of exports — it can affect you purely through your steel/aluminium supply chain, regardless of where your products are sold.
When do CBAM costs actually start applying?
CBAM's definitive regime began January 1, 2026, but certificate purchases (covering 2026 emissions) begin in 2027. The EU's free-allocation phase-out means the effective cost is lower in early years and rises over time, reaching its full ("steady-state") value around 2034. This calculator shows 2026, 2027, and steady-state estimates so you can see how exposure is expected to grow.
How accurate are the numbers in this calculator?
The calculator uses India-specific default emission values from Annex I of EU Implementing Regulation 2025/2621 and published information on CCTS as of mid-2026 — useful for a first-pass, directionally accurate estimate. However, it uses representative category-level values (e.g., one default for "steel," one for "aluminium") rather than your specific CN codes, production routes, or supplier-verified emissions data, which can shift actual figures by 30% or more. For numbers specific to your actual bill of materials and suppliers, request the detailed report or get in touch for a CarbonCost diagnostic.
What should I do if my exposure looks significant?
Start with your suppliers: ask whether they have verified emissions data, what production route they use (e.g., blast-furnace vs. electric-arc-furnace for steel), and whether they're likely to be net buyers or sellers of Carbon Credit Certificates under CCTS. If you export to the EU, confirm the CN/HS codes for your exported components so you know what's actually in CBAM scope today — and watch for the EU's proposed 2028 scope expansion. The detailed report (above) includes a full readiness checklist covering these points.