EU carbon levy pushes India to prep exporters for 2027

The EU's CBAM currently covers six sectors: iron and steel, aluminium, fertilisers, cement, electricity and hydrogen. Government officials said practical case studies on iron and steel and aluminium were discussed to show exporters how the requirements apply in practice.

For Indian producers, the mechanism could raise the effective cost of carbon-intensive exports to the EU and hit competitiveness, particularly where companies cannot provide verified actual emissions data.

EEPC India Chairman Pankaj Chadha stressed the need for awareness and preparedness across the export value chain, including the availability of emissions-related data from suppliers and other stakeholders. He also called for effective verification mechanisms to help Indian exporters comply, according to a government statement.

The outreach comes as exporters work to build reliable emissions data and verification systems across supply chains to meet EU requirements. The core challenge is establishing credible reporting before the 2027 payment deadline arrives.