The Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) is regulatory measure adopted by the EU to fight climate change and reach climate neautrality by 2050. The policy helps to ensure that imported goods face the same carbon cost as products made within the EU. Qualified EU importers must report embedded emissions for covered products including steel, cement, aluminium, fertilizers, chemicals, electricity, and hydrogen. From late 2026, these emissions will be priced through CBAM certificates.
For Indian exporters, CBAM means:
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Mandatory product-level emissions reporting
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Increased data requests from EU buyers
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A commercial advantage for low-carbon production