FICCI webinar warns of export losses, urges support for decarbonisation and fair global trade norms
New Delhi, 29 July 2025: India’s steel and aluminium industries are facing a potential 20–35% export tax as the EU’s Carbon Border Adjustment Mechanism (CBAM) takes full effect in January 2026. Industry leaders, speaking at a FICCI webinar, warned of a $102–119/tonne cost burden on steel exports.
Vinod Gupta (SAIL) highlighted India’s higher emission intensity compared to global averages, while JSPL’s Sanjay Singh called steel a “hard-to-abate” sector lacking viable decarbonisation tech. Experts also flagged CBAM’s potential conflict with global trade laws and its disproportionate impact on developing nations.
While large players are investing in green hydrogen and renewables, MSMEs risk being left behind due to limited resources. Government support through carbon credit trading schemes and emissions reporting is underway, but stakeholders stressed the need for equitable climate regulations.
