The Commerce Department is stepping up efforts to prepare Indian exporters for the EU’s Carbon Border Adjustment Mechanism, focusing on emissions data, reporting, accreditation and verification ahead of financial payments from 2027.
With the EU’s carbon tax regime under the Carbon Border Adjustment Mechanism (CBAM) coming into force from January 2026 and financial payments beginning in 2027, the Commerce Department is reaching out to exporters and industry stakeholders to step up preparedness for the new regime, focusing on emissions data, reporting, accreditation and verification requirements.
The Department of Commerce, in collaboration with the National Accreditation Board for Certification Bodies (NABCB) and the Engineering Export Promotion Council (EEPC), organised an awareness session on Tuesday at Vanijya Bhawan, New Delhi, with around 100 exporters and industry stakeholders participating, stepping up efforts to prepare Indian exporters for the new regime and its financial impact from 2027.
The EU’s CBAM currently covers six sectors: iron & steel products, aluminium, fertilisers, cement, electricity, and hydrogen. “Practical case studies relating to the iron and steel and aluminium sectors were also discussed to provide exporters with a better understanding of the application of the requirements in practice,” according to a government statement.
For Indian exporters, the mechanism could increase the effective cost of carbon-intensive exports to the EU and affect competitiveness, particularly where producers cannot provide verified actual emissions data.
EEPC India Chairman Pankaj Chadha highlighted the importance of awareness and preparedness across the export value chain, including the availability of appropriate emissions-related data from suppliers and other stakeholders. “He also emphasised the need for effective verification mechanisms to facilitate compliance by Indian exporters,” the statement added.
The outreach comes as Indian exporters face the challenge of establishing reliable emissions data and verification systems across their supply chains to meet EU requirements. Under the definitive regime, which began on January 1, 2026, EU importers are required to report embedded emissions annually and surrender CBAM certificates. The first annual declaration and surrender of certificates, covering imports made in 2026, will be due by September 30, 2027.
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