Overview
- From January 1, 2026, EU importers must buy CBAM certificates covering embedded emissions in iron and steel, aluminium, cement, hydrogen, electricity and fertilisers.
- India-focused analyses say many steel and aluminium exporters may need to cut prices by 15–22% to offset buyers’ CBAM costs, with MSMEs facing the steepest compliance burden.
- Congress leader Jairam Ramesh labels the measure an unacceptable non-tariff barrier and urges that the forthcoming India–EU trade deal account for CBAM’s impact.
- The EU proceeds despite objections from major partners and a formal dispute launched by Russia, while UNCTAD warns of limited emissions gains and risks for developing economies.
- UK–EU carbon-market linkage remains unfinished, leaving short-term exposure questions for British firms, and the EU plans to extend CBAM from 2028 to products using steel and aluminium.