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Policy▼ Bearish for Indian equities
India’s bid to keep carbon cash home as Europe adds a new trade cost
The brief
- Indian exporters will face new carbon costs under the EU mechanism from January 2026
- Higher export costs may pressure Indian steel, aluminium and other carbon-intensive exporters
EU trade and environmental rules affecting Indian exporters
Indian recyclers warned that a possible EU metal-waste export ban could raise costs and hurt MSMEs, while India’s industry urged the government to challenge its exclusion from a draft EU scrap-export list. Officials also said exporters must meet EU ESG, CBAM and certification requirements to benefit from an FTA.
Monday, 28 September
- India’s bid to keep carbon cash home as Europe adds a new trade cost