CBAM and India: What Indian Steel and Fertiliser Exporters Must Do
India faces full CBAM exposure with no domestic carbon pricing offset. Indian steel, DRI, aluminium, and fertiliser exporters face an estimated EUR 1.7B+ in annual CBAM liability. This guide covers every step Indian exporters must take.
India CBAM Exposure by Sector
| Sector | Key companies | EU export volume | Estimated annual CBAM liability at default |
|---|---|---|---|
| Steel (BF-BOF) | Tata Steel, JSW Steel, SAIL | 1,000,000–2,000,000 t/year | EUR 143–285M |
| Steel (EAF + DRI) | JSPL, Essar Steel | 200,000–500,000 t/year | EUR 28–71M |
| Aluminium | Hindalco, NALCO | 200,000–400,000 t/year | EUR 162–324M |
| Fertilisers (Ammonia) | IFFCO, Chambal Fertilisers | 500,000–1,000,000 t/year | EUR 76–152M |
India's Grid Emission Factor
India's national grid emission factor is approximately 0.82 tCO2/MWh. Regional factors vary significantly: coal-heavy states (Chhattisgarh, Odisha) are higher; renewable-heavy states (Tamil Nadu, Rajasthan) are lower. EAF steel producers in renewable-heavy states have a significant advantage in documenting actual values.
DRI: India's Unique CBAM Exposure
India is the world's largest DRI (direct reduced iron) producer, accounting for approximately 35% of global DRI production. DRI is covered under CBAM Regulation 2023/956 Annex I (CN code 7203). Gas-based DRI achieves actual embedded carbon of 0.80–1.40 tCO2/t — significantly below the 2.18 default. For Indian DRI producers, documenting actual values saves EUR 50–88/t.
Frequently Asked Questions
Does India have a carbon price eligible for CBAM deduction?
No. India does not have a national carbon tax eligible for CBAM deduction. The PAT scheme provides energy efficiency certificates but no direct carbon price.
What is India's total annual CBAM exposure?
India's total annual CBAM exposure is estimated at EUR 1.7B+ across steel, aluminium, fertilisers, and DRI — based on current export volumes and EU default values.
Which Indian steel companies face the highest CBAM exposure?
Tata Steel, JSW Steel, SAIL, and JSPL are India's major EU steel exporters. All face full CBAM exposure with no domestic carbon pricing offset.
Does CBAM apply to Indian DRI exports?
Yes. DRI is covered under CBAM Regulation 2023/956 Annex I (CN code 7203). India is the world's largest DRI producer and a significant DRI exporter to the EU.
Where can Indian manufacturers find ISO 14065 accredited CBAM verifiers?
See the India verifier directory at /verification-directory/india/ for NABCB ISO 14065 accredited CBAM verification firms.
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