EU Carbon Border Adjustment Mechanism (CBAM)
Latest version · Definitive period from 2026-01-01; IR (EU) 2025/2621 default values
Indian use case
Indian exporters in steel (HRC, rebar, sections), cement, aluminium, fertilizer and (from 2026) hydrogen face CBAM costs. Default values with mark-up: +10% in 2026, +20% in 2027, +30% from 2028. India has pushed for recognition of explicit/implicit Indian carbon price (CCTS) and excise on coal as deductible.
Key points
- Annex IV embedded emissions methodology (precursors counted, finishing-process emissions removed in 2025 simplification).
- Country defaults derived from top-10 highest-intensity countries average.
- Quarterly CBAM reports during transitional period (2023–2025); annual surrender of CBAM certificates from 2026.
Sources
Related Indian regulation
- CCTSBEE
Hybrid compliance + offset domestic emissions trading scheme administered by BEE under the EC (Amendment) Act 2022. Obligated entities receive sector-specific GHG-intensity targets and trade Carbon Credit Certificates (CCCs); voluntary projects can issue offset CCCs through Accredited Carbon Verifiers (ACVs).
- National Green Hydrogen MissionMNRE
Targets 5 MMT/yr of green hydrogen production capacity by 2030, with the SIGHT (Strategic Interventions for Green Hydrogen Transition) scheme funding electrolyser manufacturing and green-hydrogen production. H2 Hubs notified Oct 2025; Green Hydrogen Certification India (GHCI) launched Apr 2025.
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