As the European Union enforces stricter Carbon Border Adjustment Mechanism (CBAM) regulations and import quotas, the procurement landscape for Indian steel entering European markets is undergoing a structural shift. European buyers are moving beyond traditional price negotiations, actively evaluating supplier-specific carbon emissions data and establishing clear terms on who absorbs CBAM certificate costs.
With CBAM compliance shifting from simple reporting to financial certificate obligations, European importers are re-evaluating their sourcing strategies.
Highlighting this dynamic in a recent SMM (Shanghai Metals Market) analysis, Nilesh Bhattad, Founder & CEO of CleanCarbon.ai
“European customers are seeking contract terms that pass additional carbon costs back to mills. The commercial test is the carbon-adjusted landed cost, supported by reliable emissions data and clear terms on who bears the cost.” — Nilesh Bhattad, Founder & CEO, CleanCarbon.ai
To remain competitive in the EU, Indian steel producers must now offer transparent, verified, product-level carbon footprint data (Scope 1, 2, and 3 embedded emissions) alongside competitive base pricing.