India's financial burden under the European Union's Carbon Border Adjustment Mechanism (CBAM) could be significantly lower than earlier estimates, according to a new analysis. The report suggests that cleaner production methods adopted by several Indian steel manufacturers may help reduce the carbon-related costs imposed on exports to the EU.
The findings indicate that while CBAM will still affect Indian exporters, the overall net cost may be far lower than previously projected due to lower embedded emissions and available adjustments. The report highlights that companies investing in low-carbon technologies could gain a competitive edge as the EU's carbon border tax regime takes full effect.
Reference: Sustainable Views