With the EU Carbon Border Adjustment Mechanism (CBAM) implemented from 1 Jan 2026, Indian aluminium exporters are expected to incur carbon-related duties, influencing export competitiveness and pricing.
👉 Source: AlCircle / GTRI report — 2026 brings in CBAM: challenges for exporters alcircle
Summary :
As CBAM is said to be a plant-based carbon emission accounting regulation, exporters need to calculate the embedded emissions for electricity use and combustion of direct fuel.
CBAM does not consider ESG disclosures or sustainability reports. Compliance demands plant-level emissions data verified by EU-approved auditors, defaulting on which leads to inflated costs up to 30-80 per cent. Independent verification of emissions data will be mandatory with only EU-recognised or ISO 14065-adhering verifiers.
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