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India's Current Measures in Response to CBAM
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2023-05-29
India has set up an inter-ministerial group to study the impact of EU's Carbon Boundary Adjustment Mechanism (CBAM). India's initial assessment is that the main impact will be on exports of steel, iron and aluminum, which will be taxed at 20%-35% after the official implementation. The inter-ministerial group is exploring ways to mitigate the impact of the CBAM on Indian exports and is considering ways to assist the industry, including mutual recognition of inspection and certification bodies and the Carbon Credit Trading Scheme (CCTS); in addition, EU has developed different taxation standards for steel produced in low-emission short-process electric arc furnaces and steel produced in blast furnaces. India needs to investigate the structure of the domestic steel industry first to help manufacturers transform.
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