CBAM May Raise India's Steel Sector Tax by 20-35%, Affecting 0.5% of GDP
Steel

CBAM May Raise India's Steel Sector Tax by 20-35%, Affecting 0.5% of GDP

During the Conference on Carbon Border Adjustment Mechanism (CBAM) organized by ASSOCHAM, Ashwini Kumar, Economic Advisor at the Ministry of Steel, revealed that the Indian steel industry emits 2.5 tonne of CO2 per tonne of crude steel, attributed to limited gas resources and other factors. Kumar discussed the challenges of decarbonisation in light of India's developmental needs and emphasized the need for adopting green technologies despite their high costs and stringent intellectual property regimes.

Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems.

In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes.

Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards.

Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms.

Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance.

The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

During the Conference on Carbon Border Adjustment Mechanism (CBAM) organized by ASSOCHAM, Ashwini Kumar, Economic Advisor at the Ministry of Steel, revealed that the Indian steel industry emits 2.5 tonne of CO2 per tonne of crude steel, attributed to limited gas resources and other factors. Kumar discussed the challenges of decarbonisation in light of India's developmental needs and emphasized the need for adopting green technologies despite their high costs and stringent intellectual property regimes. Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems. In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes. Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards. Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms. Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance. The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?