Indian engineering goods exporters have asked the Indian government to mandate steel mills to disclose their carbon emissions from their steelmaking processes, so that downstream industries can make full disclosures to meet the rules of the EU’s Carbon Border Adjustment Mechanism (CBAM) when exporting steel goods to the region, a statement of the Engineering Export Promotion Council (EEPC) said on Tuesday, December 24.
“It is crucial to recognise that a substantial portion of carbon emissions occurs during the raw material stage of production, particularly in the steel industry,” the EEPC said in a statement.
The government needs to mandate all steel manufacturers, both primary and secondary, to include carbon emission data in their product test certificates, and this transparency will provide a more accurate representation of the environmental impact of products, the EEPC said.
The CBAM represents a significant stride towards equalising the carbon costs faced by EU products operating under the EU Emissions Trading System (ETS) and their imported counterparts. This approach seeks to ensure that EU industries remain competitive on the global stage while adhering to stringent climate policies, it said.
The EEPC has further said that that the Indian government should also incorporate a ‘carbon border tax’ “as a top agenda” in the ongoing free trade agreement negotiations, particularly with the UK and the EU. By doing so, it added, India can ensure that the advantages of FTAs are preserved in the face of evolving climate-conscious trade policies.