CBAM May Raise India's Steel Sector Tax by 20-35%, Affecting 0.5% of GDP
Steel

CBAM May Raise India's Steel Sector Tax by 20-35%, Affecting 0.5% of GDP

During the Conference on Carbon Border Adjustment Mechanism (CBAM) organized by ASSOCHAM, Ashwini Kumar, Economic Advisor at the Ministry of Steel, revealed that the Indian steel industry emits 2.5 tonne of CO2 per tonne of crude steel, attributed to limited gas resources and other factors. Kumar discussed the challenges of decarbonisation in light of India's developmental needs and emphasized the need for adopting green technologies despite their high costs and stringent intellectual property regimes.

Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems.

In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes.

Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards.

Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms.

Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance.

The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

During the Conference on Carbon Border Adjustment Mechanism (CBAM) organized by ASSOCHAM, Ashwini Kumar, Economic Advisor at the Ministry of Steel, revealed that the Indian steel industry emits 2.5 tonne of CO2 per tonne of crude steel, attributed to limited gas resources and other factors. Kumar discussed the challenges of decarbonisation in light of India's developmental needs and emphasized the need for adopting green technologies despite their high costs and stringent intellectual property regimes. Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems. In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes. Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards. Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms. Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance. The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?