Aluminium extrusion — exports to Germany
Modelling CBAM exposure for a mid-size aluminium extruder
This is an illustrative scenario describing a hypothetical company archetype, built to demonstrate CBAM mechanics. It does not describe an actual Prakrti client, and no outcome shown was measured or delivered — figures are modelled projections only.
The scenario
A mid-size aluminium extruder in Gujarat exports profiles to a German fabricator under long-standing purchase orders. With CBAM's definitive period underway since 1 January 2026, the German buyer — as the declarant — now has to report embedded emissions per shipment and, from 2027, cover them with CBAM certificates. The extruder has never calculated installation-level emissions and has no answer ready when its buyer asks for supplier data ahead of the first annual declaration.
Approach we would model
- Confirm CBAM scope: aluminium is one of the six covered goods, so every consignment above the 50 tonne per year (per EU importer) threshold falls inside the mechanism — modelled here as clearly in scope given the shipment volumes involved.
- Build a facility-level Scope 1 and 2 inventory for the extrusion process — furnace fuel, electricity draw per tonne of extruded output — mapped to the CBAM calculation methodology for aluminium rather than a generic industry average.
- Structure the output to the EU's CBAM communication template so the German buyer can lodge it directly against the relevant CN codes, instead of falling back on default values.
- Model the cost differential: EU default values for aluminium are typically 30 to 80 percent above verified actual emissions for efficient Indian producers, so the certificate cost avoided by supplying verified data is estimated and shown to the buyer as a negotiating input.
Projected outcome
Projected / modelled — not a delivered result
Modelled outcome, not an achieved result: if the extruder's actual embedded emissions sit toward the lower half of that 30–80 percent default gap, verified data could remove a meaningful share of projected CBAM certificate cost per shipment relative to the default-value scenario — a difference the buyer can weigh directly against a competing quote. This is a projection based on typical default-value spreads, not a measured saving from a completed engagement.
Facing a similar situation for real?
This scenario is hypothetical, but the mechanics — thresholds, calculation methods, disclosure formats — are real. Tell us your sector and export markets and we will map what actually applies to you.
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