Govt to support steel exports hit by CBAM, Pg19

Key Highlights:

• The Union Steel Secretary announced that the government will support India's steel exports, which are being impacted by the EU's Carbon Border Adjustment Mechanism (CBAM).
• Approximately two-thirds of India's total steel exports are shipped to Europe.
• The CBAM, implemented by the EU, imposes fees on imports of carbon-intensive goods like steel and cement.

Detailed Insights:

• The EU's CBAM policy, first announced in 2021, has been criticized by India for potentially hindering steel trade.
• Despite a recent trade deal with the EU that reduced tariffs in several sectors, the CBAM remains in place, continuing to affect Indian steel exports.
• The regulatory framework of the CBAM requires importers to report the carbon emissions embedded in their products, potentially leading to additional costs for Indian steel exporters.

Key Concepts Involved:

• Carbon Border Adjustment Mechanism (CBAM): A carbon tariff on carbon-intensive products imported into the EU.
• Steel Exports: The sale and shipment of steel products from one country to another.
• Carbon Emissions: Greenhouse gases released into the atmosphere as a result of industrial processes.