India has not significantly advanced its CBAM preparedness: GTRI

New Delhi, September 21 (PTI), the European Union, metals, government and Indian exporters, including carbon tax only 100 days left to apply carbon tax.

Indian steel and aluminum exporters look at a new cost shock when it starts to collect the Carbon Border Adjustment Mechanism (CBAM) tax from the European Union (EU) Carbon Border Adjustment Mechanism (CBAM).

The CBAM regulation reported in May 2023 will initially cover iron and steel, aluminum, cement, electricity, hydrogen and fertilizers. In the next few years, the EU plans to expand CBAM to cover all large industrial products.

It is designed to equalize carbon costs between EU production and imported goods.

As of January 2026, the EU will request a carbon tariff for selected imports by using the EU Emission Trade System (ETS) price and adapting to the already paid carbon prices in the export country.

Global Trade Research Initiative (GTRI), “Although it has a two -year transition time since October 2023, India has not improved its preparation significantly. Exporters, especially MSMes, emission reporting and verification processes lack of clarity.” He said.

Authorized said that a major policy initiative has not been initiated to support capacity creating or subsidize compliance costs.

“AB Cbam Levies starts from January 2026, while the risk of more export shrinkage seems great.” He said.

He argued that India should request a comparable treatment as part of the ongoing India-EU Trade Pact negotiations, which have been reported to have been presented to the United States within the scope of commercial frameworks.

India’s aluminum exports to Steel and the EU fell by 24.4 percent of US dollars in 25 financial years.

Steel was shot most hard, iron and steel exports dropped to 3.05 billion dollars by 3.05 billion percent, iron and steel items fell by 6.8 percent and aluminum exports decreased by 9.8 percent, “This sharp decline, CBAM tax collection, even before the beginning of the Indian sector emphasizes heavy harmony,” he said.

Srivastava suggested that India should urgently launch a comprehensive CBAM preparation plan.

This should include quick -sectoral comparisons, solid MRV (monitoring, reporting, verification) systems and compatibility bottlenecks with sufficient accredited verification and carbon credit trade scheme (CCTS).

“India should negotiate with Brussels for the flexible flexibility, such as the US guarantees longer stage periods, partial waiver or recognition of domestic carbon payments.”

He also said that the EU’s new strategic agenda, published on September 17, can be deducted from CBAM obligations of carbon prices paid according to India’s upcoming CCTs.

“This is presented to India as a concession, but it is not an privilege as a provision of the CBAM regulation, it allows such deductions for all countries. India’s Carbon Credit Trade Plan (CCTs) is not yet ready.

This means that Indian exporters will carry the full CBAM load from 1 January 2026. ”