CBAM exemption may not offer much relief to Indian steel MSMEs: Experts

50-tonne threshold seen as too low to ease burden; experts call for green transition or market diversification

The European Union’s (EU’s) decision to exempt small traders from its Carbon Border Adjustment Mechanism (CBAM) got a boost with the European Parliament and Council reaching an agreement in June. However, it may not yield significant benefit for the Indian micro, small and medium enterprises (MSME) sector, say industry experts.

 

The exemption, first proposed by the European Commission in February, introduces a threshold of 50 tonnes per annum for CBAM’s implementation. On June 18, it was announced that the European Parliament and Council had reached an agreement.

 

It must now formally adopt the package before it can come into force