The European Union’s Carbon Border Adjustment Mechanism (CBAM) is emerging as a pivotal gateway for India’s steel industry to strengthen its foothold in international markets. By aligning with stringent environmental standards, Indian steelmakers could not only safeguard their competitiveness but also capture new opportunities in the European market, which is increasingly demanding low-carbon materials.
According to JSW Steel’s Executive Vice President, Saji Samuel, the mechanism presents a significant export window for producers committed to decarbonisation. Mills that invest in cleaner technologies, efficient energy use, and carbon-cutting measures are expected to find favourable ground in Europe, where regulatory frameworks now prioritise sustainability across the value chain. This transition marks an important step in reshaping global steel trade, with environmental compliance becoming as critical as cost and quality.
The move towards green steel exports also reflects India’s broader ambition to position itself as a responsible manufacturing hub. With domestic policies encouraging renewable energy adoption, waste reduction, and circular economy practices, the steel industry is preparing to align with global low-emission benchmarks. For many producers, CBAM compliance is not just about meeting European standards but also about future-proofing operations against similar frameworks that other regions may adopt.
Industry experts note that the transition could require significant investment in cleaner technologies, from hydrogen-based steelmaking to carbon capture solutions. While challenging, these measures promise long-term gains, including improved access to premium markets, enhanced brand reputation, and alignment with India’s climate commitments.
The development signals a turning point for Indian steelmakers, shifting the industry narrative from cost-driven competitiveness to one centred on sustainability and innovation. By embracing CBAM-linked opportunities, Indian companies have the chance to lead the global green steel movement and reinforce their role in the future of climate-friendly manufacturing.
