As of January 2026, the EU Carbon Border Adjustment Mechanism (CBAM) has entered its definitive phase. EU importers must now purchase and surrender CBAM certificates for the embedded emissions of covered goods: iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen.
For Indian exporters, this is no longer a future risk — it is a current cost. The certificate price is linked to the EU ETS carbon price, which has fluctuated between €50 and €100 per tonne over the past year. For a typical Indian steel exporter, this could add $40–$80 per tonne to the delivered cost.
Compliance requires accurate calculation of embedded emissions using CBAM-compliant methodologies, including both direct emissions and emissions from electricity consumed in production. Default values apply where actual data is not provided, and these defaults are deliberately conservative — providing a strong incentive for companies to report actual emissions.
RSustain’s CBAM Compass tool, available on india.rsustain.com, helps exporters calculate their CBAM exposure and develop response strategies. Our advisory combines GHG accounting expertise with trade compliance knowledge to help companies minimise their CBAM liability through both accurate reporting and genuine decarbonisation.
CBAM is the new reality. Indian exporters who have prepared will manage the transition; those who have not are already paying a premium.