CBAM, in plain English.

Yes. There is no minimum threshold based on company size, revenue, or shipment value. If your goods fall under CBAM-covered CN codes and are exported to the EU, you must provide emission data regardless of whether you are an MSME or a large manufacturer. Even small consignments aggregate towards your EU importer's total CBAM liability. CarbonSettle offers affordable CBAM compliance plans specifically designed for Indian MSMEs.

For CBAM compliance, you need: (1) Electricity bills from your state utility (MSEDCL, UGVCL, TANGEDCO, PSPCL, etc.), (2) Fuel purchase invoices (natural gas, coal, HSD, furnace oil), (3) Production logs with output quantity per product in tonnes, (4) Raw material purchase records for precursor materials (e.g., pig iron, clinker, alumina), (5) Emission data from your raw material suppliers for precursor emissions. CarbonSettle collects and processes all of this on your behalf.

Scope 1 (Direct Emissions) are CO₂ emissions released directly at your factory — from burning fuels like natural gas, coal, or HSD in furnaces, boilers, and kilns. Scope 2 (Indirect Emissions) are emissions from the electricity you purchase from the grid. CBAM requires both. For Indian factories, Scope 2 is particularly significant because India's power grid has a high emission factor due to coal-based power generation.

EU default values are standardized emission figures assigned by the EU for each product category when actual emission data is not available. They are intentionally set high to penalize non-compliance — typically at the level of the worst-performing 10% of EU producers. For Indian exporters, using defaults instead of actual verified data means paying 30–40% more CBAM tax than necessary. For example, Indian blast furnace steel has actual emissions of ~2.2 tCO₂/tonne, but default values can be significantly higher. Using actual data saves ₹70 lakh to ₹1.6 crore per 1,000 tonnes.

The fastest way is to partner with an end-to-end CBAM compliance service like CarbonSettle. Instead of hiring staff, learning EU regulations, and building in-house capabilities, you simply share your factory data (electricity bills, fuel invoices, production logs). CarbonSettle handles everything: emission calculations, supplier data collection, EU XML report generation, audit preparation, verifier coordination, and EU importer handoff. First reports can be ready within 2–4 weeks.

CarbonSettle is India's #1 end-to-end CBAM compliance service. Unlike advisory firms that just give you slides, or software that asks your team to operate it, CarbonSettle gives you a dedicated CBAM expert plus an AI assistant that tracks your manufacturing data, fills the buyer's report, and surfaces every cost-reduction opportunity — simple enough that a factory worker can use it. We handle everything: data collection in any format, supplier coordination in every major Indian language, EU XML generation, audit documentation, verifier handling, and importer handoff. Trusted by 100+ Indian manufacturers across steel, aluminium, and cement sectors.

CarbonSettle is a complete end-to-end CBAM compliance service — not software. While we use technology to automate calculations and report generation, our core offering is a fully managed service. Your dedicated CBAM expert handles everything for you. Think of us as your outsourced CBAM department — a one-stop compliance partner that takes your entire carbon tax headache away.

CarbonSettle can deliver your first CBAM-compliant report within 2–4 weeks: Week 1 — factory boundary mapping and data collection. Weeks 2–3 — emission calculations and supplier outreach. Days 3–5 — report generation, review, and EU importer handoff. For ongoing compliance, quarterly reports are delivered within 48 hours of data submission. We handle all supplier follow-ups, verifier coordination, and EU importer communication continuously.

CarbonSettle offers transparent per-installation pricing in INR. Comprehensive annual plans including supplier data collection, verification support, and EU importer coordination are available. The cost of NOT having a CBAM service is far higher — exporters using EU default values overpay ₹70 lakh to ₹1.6 crore per 1,000 tonnes. Contact us for a free assessment and customised quote.