EU carbon tariffs worry Indian steel industry

These tariffs worry the Indian steel industry, which could suffer significant losses in their exports to the EU. The Indian government is in talks with the EU to mitigate these tariffs.

Under the EU's proposal, known as the Carbon Border Adjustment Mechanism (CBAM), exporters to the EU would be required to purchase certificates to offset their carbon emissions. This would impose additional costs on Indian steelmakers to make them competitive with EU industries that receive permits from the EU's carbon market.

According to a recent report by the Wood Mackenzie research group, the cost of Indian steel exports to the EU could increase by 56 per cent by 2034 due to CBAM. The EU has already launched the first phase of CBAM, which requires importers to report greenhouse gas emissions from the production of products such as steel.