EU's carbon border tax could undermine Indian exports—here's why
The EU's carbon border adjustment mechanism could make Indian exports uncompetitive, unless efforts to reduce carbon emissions are accelerated
Print Edition: Jun 23, 2024
The EU's carbon border adjustment mechanism could make Indian exports uncompetitive, unless efforts to reduce carbon emissions are accelerated
For Jindal Stainless, exports constitute approximately 15% of sales volume; about 40% goes to Europe. While Europe presents a significant growth opportunity for the stainless steel major, the European Union’s Carbon Border Adjustment Mechanism (CBAM) could have posed a hurdle. But the company’s focus on sustainability and reducing carbon emissions has helped it stay competitive. “CBAM’s transition period, starting from October 1, 2023, imposes extensive data compliance requirements on Indian exporters,” says Abhyuday Jindal, MD of Jindal Stainless. “While CBAM won’t immediately affect our business financially, the financial implications will begin on January 1, 2026.”
