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Case Study: How Jindal Aluminium Streamlined EU CBAM Compliance and Cut Reporting Costs by 40%

Jindal Aluminium Case Study
CBAM is not just a compliance requirement; it is a commitment to the environment. When you reduce carbon footprints in true terms, your production processes optimize, product quality improves, and long-term profitability follows naturally. And that’s where CleanCarbon.ai software helps us accelerate the process efficiency.

Executive Summary

MetricOutcome
OrganizationJindal Aluminium Limited
Industry SectorAluminium Extrusions & Fabricated Products
Primary MarketsIndia, European Union, Global
Reporting Cost Reduction40% savings via automated ERP tracking
Compliance On-Time Rate100% on-time submission of EU-compliant reports
Audit PerformanceZero discrepancies on EU third-party audits

As the European Union’s Carbon Border Adjustment Mechanism (CBAM) transitions from definitive reporting to full financial enforcement, non-EU industrial exporters face strict requirements for calculating and reporting embedded carbon emissions across Scope 1, Scope 2, and precursor material supply chains.

By integrating CleanCarbon.ai, Jindal Aluminium transformed regulatory compliance from an operational burden into a strategic market advantage.

Background & Regulatory Context

Jindal Aluminium Limited is India’s largest manufacturer of aluminium extruded products. Exporting manufactured goods to the European Union places Jindal directly within the scope of EU CBAM regulations governing energy-intensive sectors (including aluminium, iron, steel, cement, fertilizers, hydrogen, and electricity).

Under CBAM requirements, European importers must declare the embedded direct and indirect emissions contained within imported goods. Non-compliance or data reporting errors risk border delays, heavy regulatory penalties, and loss of competitive positioning in European markets.

Core Operational Challenges

Before automating its carbon accounting workflows, Jindal Aluminium evaluated several operational and technical hurdles:

  1. Complex Scope 1, 2, and Precursor Mapping: Calculating product-level carbon intensity required granular data from multiple manufacturing stages, including billet casting, extrusion pressing, anodizing, and fabrication.
  2. Third-Party Vendor Emissions Data: Accounting for precursor material emissions from upstream suppliers—many of whom lacked formal carbon reporting frameworks—created data gaps across the supply chain.
  3. Manual Data Entry Bottlenecks: Collecting emissions data manually across fragmented plant sites proved labor-intensive, error-prone, and slow.
  4. Strict EU Technical Formats: The EU CBAM Transitional Registry requires reporting in specific XML and structured formats, demanding continuous verification against evolving technical guidelines.
  5. Audit Readiness & Data Privacy: Reports required full auditability while keeping sensitive supplier pricing and proprietary operational data secure under GDPR standards.

Technical Solution & Implementation Roadmap

Jindal Aluminium partnered with CleanCarbon.ai to implement an end-to-end automated CBAM compliance and carbon accounting system.

1.Phase 1: Supply Chain Assessment & Gap Analysis: Months 1-2.

CleanCarbon.ai sustainability experts conducted on-site and remote audits across Jindal’s manufacturing facilities. They mapped material flows, identified energy consumption points, and pinpointed primary emission sources across direct furnace combustion, purchased electricity, and supplier precursor inputs.

2.Phase 2: Automated ERP Integration & System Setup: Months 2-3.

CleanCarbon.ai integrated its carbon accounting platform directly with Jindal Aluminium’s existing Enterprise Resource Planning (ERP) systems. The platform automated data extraction for energy consumption, fuel usage, and production volumes, eliminating manual reporting errors.

3.Phase 3: Real-Time Dashboards & EU XML Generation: Month 4.

The platform configured custom analytics dashboards to provide real-time visibility into product-level carbon footprints (tCO_2e per ton of finished extrusion). Automated modules were set up to generate EU-ready XML and Excel reports formatted to transitional registry specifications.

Results & Measurable Business Outcomes

The strategic partnership yielded clear, quantifiable improvements across financial, operational, and regulatory metrics:

  • 40% Reduction in Compliance Costs: Automating data collection and report generation reduced manual labor hours and external audit preparation costs.
  • 100% On-Time Reporting: Jindal submitted all required CBAM declarations on time, avoiding logistics delays at European ports.
  • Zero-Discrepancy Audit Performance: On-field compliance support and GDPR-compliant data logging ensured Jindal passed EU regulatory reviews with zero discrepancies.
  • Enhanced Market Competitiveness: Transparent carbon footprint data allowed Jindal’s commercial teams to offer verified low-carbon aluminium profiles to climate-focused EU buyers.

Key Strategic Takeaways

  1. Automation Ensures Scalability: Relying on manual spreadsheets for multi-facility carbon reporting creates significant regulatory risks. ERP integration ensures data accuracy and long-term compliance.
  2. Fallback Rules for Vendor Data: When raw material suppliers cannot provide primary carbon data, leveraging verified EU default values prevents reporting stalls while supplier engagement matures.
  3. Decarbonization Boosts Profitability: Mapping emissions hotspots highlights process inefficiencies. Optimizing thermal efficiency and reducing material waste lowers unit manufacturing costs while cutting total carbon liabilities.

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