CBAM as an opportunity

Indian exporters could proactively adjust to it

Ever since the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) was announced in mid-2023, Indian industry has openly expressed its reservations about this framework, which places an emission tariff on imports. A recent survey on tax transparency in ESG (environmental, social, and corporate governance) by consultancy firm PriceWaterhouseCoopers (PwC) showed that 67 per cent of respondents said CBAM was likely to impact their supply chains. These fears are not misplaced. A study by the Delhi-based Centre for Energy, Environment and Water has estimated that the tax would impact 43 per cent of India’s exports to the EU, the country’s