Indian steelmakers could face carbon costs of up to $116 per tonne by 2034 under the EU's Carbon.

Border Adjustment Mechanism (CBAM), impacting exports as Europe accounts for 25% of India's steel shipments. Rystad Energy highlights India and Russia as the most exposed, with potential levies reaching $397 per tonne if carbon prices remain stable. The Indian government has introduced a green steel classification under the PLI scheme to encourage cleaner production. Leading steelmakers like Tata Steel and JSW Steel are investing in decarbonization, but India’s emission reduction targets still fall short of EU standards. With steel capacity projected to hit 189 Mtpa by 2035, failure to cut carbon intensity could lead to hefty penalties for exporters.