India's steel industry to look at renewable energy to avoid CBAM tariffs

26 Sep 2024 CW Team

The EU Emissions Trading System (ETS), launched in 2005, is a key element of the European Union's climate change strategy and remains the world’s largest carbon market. Under the system, producers within the EU are required to offset their CO2 emissions by purchasing allowances from the EU ETS. This has led some companies to relocate their operations to regions with less stringent emissions regulations in order to reduce costs, a phenomenon known as ‘carbon leakage’. To counter this, the EU introduced a ‘carbon levy’ on imported goods, applying it to products from countries with lower emissions standards than those of the EU to prevent highly emission-intensive imports.

Building on this, the European Commission has proposed the world’s first ‘carbon border tax’, aimed at imports of carbon-intensive products such as steel, hydrogen, cement, fertilisers, and aluminium, in line with the EU’s climate goals. This tax is based on the EU’s domestic emissions regulations and includes fees for exceeding emissions limits. The Carbon Border Adjustment Mechanism (CBAM), which targets these sectors, is expected to affect around 4% of the EU's total imports by value.

Indian steel exports to Europe, which account for over 20% of India’s total steel exports in the first half of FY25, may be significantly impacted. Italy, Belgium, Spain, and the United Kingdom are among the primary destinations. Indian steel production emits 2.6 tonnes of CO2 per tonne of steel, higher than the global average of 1.85 tonnes, giving the EU a rationale for imposing higher duties on Indian products. According to ICRA, the CBAM framework could affect 15-40% of India's steel exports to Europe, with the impact expected to be felt from 2026 to 2034. Notably, the USA and Singapore are also likely to introduce similar policies.

Infrastructure Energy

18 Aug 2025

Tata Power, Suzlon Ink Rs 60 Billion Wind Energy Deal in Andhra

Tata Power has signed an agreement with Suzlon Energy to develop, construct, and supply 700 megawatt (MW) wind turbines in Andhra Pradesh. The Rs 60 billion project forms part of a 7 gigawatt (GW) renewable energy plan announced by Tata Power Renewable Energy (TPREL) and the state government in March 2025.This marks the first wind energy project in the state since 2019. The larger 7 GW programme, covering solar, wind, and hybrid projects with or without storage, is expected to attract investments of around Rs 490 billion, making it one of the state’s largest clean energy commitments.The turb..

Odisha Approves Rs 12.6 Billion For 32 New Bridges

Odisha is set for a major infrastructure boost with the approval of 32 new bridges under the Setu Bandhan Yojana for FY 2025–26. The project, valued at Rs 12.6 billion, is aimed at improving road connectivity across ten districts, enhancing mobility and driving local development.The bridges will be constructed in Bolangir, Subarnapur, Nayagarh, Sambalpur, Malkangiri, Bargarh, Koraput, Jagatsinghpur, Cuttack, and Puri. Many of these areas are rural or located in difficult terrains, where improved accessibility will greatly benefit the transportation of goods and public mobility.Setu Bandhan Y..

UP Plans Rs 350 Billion Gorakhpur–Shamli Expressway

Uttar Pradesh is preparing to build its largest expressway, a 700-km six-lane project that will surpass the 570-km Ganga Expressway from Meerut to Prayagraj. Designed as a greenfield project, the Gorakhpur–Shamli Expressway will cut travel time between eastern and western Uttar Pradesh to just six hours, transforming regional connectivity.The expressway will pass through 22 districts and 37 tehsils, bringing faster travel and significant economic benefits, including higher land values for farmers and employment opportunities during and after construction. A drone survey to map the route is e..

India's steel industry to look at renewable energy to avoid CBAM tariffs

Tata Power, Suzlon Ink Rs 60 Billion Wind Energy Deal in Andhra

Odisha Approves Rs 12.6 Billion For 32 New Bridges

UP Plans Rs 350 Billion Gorakhpur–Shamli Expressway

Latest Updates

Recommended for you

Advertisement

Subscribe to Our Newsletter

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

15th RAHSTA EXPO 2025

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address