Carbon Border Adjustment Mechanism (CBAM) – Implications for Indian Exports
The European Union’s Carbon Border Adjustment Mechanism (CBAM)—set for full implementation from January 2026—imposes a carbon price on imports of carbon-intensive goods from countries with less stringent climate policies. Its goal is to prevent “carbon leakage” and level the playing field for EU industries by taxing emissions embedded in imports, affecting products such as steel, cement, aluminium, fertiliser, and electricity.
Recent Developments
- CBAM, introduced by the EU, will impose carbon tariffs on imports of carbon-intensive goods like steel, cement, aluminium, electricity, and fertilizers starting January 2026, impacting India's export sectors significantly.
- India's iron, steel, and aluminium exports to the EU, which ....
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