🌏Does the EU CBAM contribute to the business case of low-carbon steel in India? On 4 August we hosted a webinar to launch our report ”The…

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🌏Does the EU CBAM contribute to the business case of low-carbon steel in India? On 4 August we hosted a webinar to launch our report ”The EU CBAM’s Real Impact on India”, with a panel discussion on the topic. 🎯Regarding the incentive to decarbonise, Darshna Singh, Programme Associate at CEEW, noted that: “the European Union has been successful in creating an emerging premium market for low-carbon products. So for Indian exporters, the CBAM will definitely act as an incentive to differentiate their strategy in terms of how they want to serve the domestic market versus how they want to serve the international market.” 📊However, Sangeeth Selvaraju, Policy Fellow at the Grantham Research Institute at LSE, noted the small scale of the CBAM’s effect: saying “exports are about 4% of the overall steel production in India, maybe less. So what effect does the CBAM have on decarbonization priorities in India?” Based on our CBAM Simulator 2.0, we found that: 🔹In an ‘expected scenario’, which takes into account optimisations made by exporters and rising EU market prices, total CBAM costs may drop from €762 million to only €79 million. 🔹In an ‘ambitious scenario’, in which new low-emission capacity is deployed, CBAM costs could be turned into a net profit of €44 million.

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