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Tset offers simulation for the entire value chain

Preparing for CBAM: using software to determine and reduce costs and CO2 emissions

Tset has developed standardised software for simulating costs and CO2 emissions. From October 2023, the "CBAM" will require EU manufacturing companies to analyse and report emissions along their entire value chain. Tset's solution enables them to both prove their emissions and reduce the carbon footprint of their supply chain to save avoidable costs for CBAM certificates.

Wien, Österreich

The Carbon Border Adjustment Mechanism (CBAM), an obligation to certify and document CO2 emissions, is a major challenge for European companies: From October 1, they will have to prove on a quarterly basis whether and to what extent they have imported certain emission-intensive goods from outside the EU as part of their production. From 2026, these emissions will have to be offset in the form of CO2 certificates. The border tax will initially apply to emission-intensive product groups where the risk of carbon leakage is particularly high. These are cement, steel and iron, aluminium, fertilisers, electricity and hydrogen. Even if companies do not produce or process these goods themselves, the CBAM applies if, for example, they use iron, steel or aluminium containers imported from non-EU countries.

Standardised solution enables holistic CO2 management

This requires additional administrative effort, ranging from determining meaningful emissions data from the entire upstream supply chain to preparing CBAM declarations and purchasing the appropriate amount of carbon credits. Tset helps companies to determine the costs and CO2 values of their entire value chain in detail and to evaluate them in terms of sustainable production. This is based on a specially developed standardised software for holistic cost and CO2 management. The cloud-based, intuitive solution makes it possible to evaluate and compare different suppliers prior to production.

The Tset software calculation is many times more accurate than commonly used methods such as the cost-per-kilo method, which only uses the net weight of the material used to determine the corresponding cost value. By simulating different scenarios, companies can minimise the carbon footprint of their supply chain and avoid unnecessary costs for CBAM certificates.

Our software uses a combination of comprehensive and up-to-date master data, a recognised calculation methodology and intelligent and extensively validated algorithms.

Andreas Tsetinis, CEO and co-founder of Tset.