The EU's Carbon Border Adjustment Mechanism (CBAM) imposes a carbon tariff on steel imports, making 90% of India's CBAM-exposed exports vulnerable. This makes the shift to low-carbon 'green steel' an urgent economic and environmental necessity to protect trade and meet India's 2070 net-zero target. India's new Green Steel Taxonomy and roadmap aim to reduce emission intensity, but face challenges like high costs and scrap supply constraints.
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- ›CBAM Effective Date: January 2026
- ›India's Steel Exports to EU: Two-thirds of total exports
- ›Target this Data: Emission intensity threshold for Green Steel is <2.2 t-CO2e/tonne of finished steel.
- ›Target this Nodal Body: The Ministry of Steel is the nodal ministry for the Green Steel Taxonomy and pilot projects under the National Green Hydrogen Mission.
- ›Target this Legal Point: The EU's Carbon Border Adjustment Mechanism (CBAM) came into effect in January 2026.
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