Is The Indian Iron And Steel Industry Ready For The CBAM?

In the financial year 2022-23, India’s iron and steel exports to the EU represented 23.5% of its total steel exports. The European Union’s Carbon Border Adjustment Mechanism (CBAM) is set to become mandatory from January 2026 for all suppliers of Iron and steel, Aluminium, Cement, Fertilisers and Electricity to the EU market.

As sustainability has evolved from being a fashionable concept to being a requirement for uninterrupted businesses across the world, India’s export worth more than $13 billion covering carbon intensive sectors is at risk.