Indian companies prep for EU's CBAM as transitional phase kicks in

Even as the European Union’s (EU’s) carbon levy transition period came into effect on Sunday, small businesses remained apprehensive about potential disruptions in the trade of industrial goods. On the other hand, larger firms affected by the regulation, while expressing concern, had already initiated the necessary processes and appeared more prepared to address the situation.

Starting from October 1, the carbon border adjustment mechanism (CBAM) will be applicable to exports of cement, iron and steel, aluminium, fertilisers, and hydrogen to the EU. The steel and aluminium sectors are expected to face the most significant impact, as India does not export