The European Green Deal is not just a climate policy — it is a trade policy. With the Carbon Border Adjustment Mechanism (CBAM) phasing in from 2026, Indian exporters in steel, aluminium, cement, fertilisers, and electricity face a new cost of doing business with Europe.
CBAM requires importers to purchase certificates corresponding to the carbon price that would have been paid had the goods been produced under the EU Emissions Trading System. For Indian manufacturers with carbon-intensive processes, this could add 5–15% to the landed cost of their products.
The response cannot be last-minute. Companies need to: (1) establish accurate GHG inventories at the product level, not just the facility level; (2) invest in decarbonisation pathways — fuel switching, energy efficiency, renewable procurement; and (3) engage with EU importers to understand reporting timelines and data requirements.
RSustain has been tracking CBAM since its proposal stage. Our advisory combines carbon accounting (GHG Protocol and ISO 14064) with trade compliance expertise to help Indian exporters prepare systematically rather than reactively.
The EU Green Deal will reward low-carbon producers and penalise laggards. Indian industry has a window of opportunity to invest in decarbonisation — but that window is narrowing.