When does the EU's Carbon Border Adjustment Mechanism start taxing?

The CBAM is scheduled to begin its taxation phase in 2026.

What must Indian steelmakers do to comply with EU carbon rules?

Indian steelmakers need to cut emissions faster and potentially move up the value chain to retain their European export market.

Will the India-EU free trade agreement help with CBAM challenges?

No, the current FTA discussions are silent on CBAM, offering no relief to Indian steel producers.

Home / Business and Economy / India's Steelmakers Face EU Carbon Tax Reckoning

India's Steelmakers Face EU Carbon Tax Reckoning

30 Jan

•

Summary

EU's CBAM shifts from reporting to taxation in 2026.
Indian steel exporters face EU market access challenges.
FTA talks with EU offer no relief from carbon rules.

India's Steelmakers Face EU Carbon Tax Reckoning

The European Union's Carbon Border Adjustment Mechanism (CBAM) is set to move from a reporting phase to actual taxation starting in 2026. This significant shift poses a costly transition for Indian steelmakers, who must urgently reduce their carbon emissions or risk losing access to their most profitable export market.

Discussions around a potential India-EU free trade agreement (FTA) have not yielded any concessions regarding the new carbon regulations. Consequently, Indian producers have received a clear directive: enhance environmental sustainability swiftly to retain European customers. The immediate impact is already being felt, with small-scale Indian steel exporters experiencing initial CBAM-related disruptions, including shipments being held at European ports and facing order cancellations.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.