India's Iron & Steel and Cement sectors carry some of the highest default values in IR (EU) 2026/1740 Annex I — driven by coal-intensive production.
India exports significant volumes of flat-rolled steel, stainless steel products, and semi-finished steel to the EU. Indian cement producers are expanding into EU-adjacent markets. Aluminium ingots and billets are exported from primary smelters. India's steel default (4.27 tCO₂e/t BF-BOF semi-finished) and cement default (1.44 tCO₂e/t grey clinker) are among the highest in the regulation.
Source: IR (EU) 2026/1740 Annex I, which replaced the Annex I of IR (EU) 2025/2621 from 1 January 2026 · Default = the published total-emissions value · Net cost adds the Annex I mark-up once — 10% in 2026 and 30% from 2028 for cement, iron and steel, aluminium and hydrogen, 1% for fertilisers · Used when verified actual data is not provided
| Product | Sector | Default tCO₂e/t | Net cost 2026 €/t | Net cost 2030 €/t |
|---|---|---|---|---|
Grey Portland cement CN 25232900 | Cement | 1.4800 | €119.49 | €74.59 |
Anhydrous ammonia CN 28141000 | Fertilisers | 3.2800 | €243.15 | €128.43 |
Urea (solid) CN 31021019 | Fertilisers | 2.2200 | €164.57 | €86.93 |
Ammonium nitrate CN 31023090 | Fertilisers | 2.3400 | €173.47 | €91.63 |
Steel semi-finished (BF-BOF) CN 72071114 | Iron & Steel | 4.2700 | €344.75 | €215.21 |
Unwrought aluminium CN 7601 | Aluminium | 1.8700 | €150.98 | €94.25 |
Hydrogen CN 28041000 | Hydrogen | 14.0300 | €1132.75 | €707.11 |
Net cost = default tCO₂e/t × €75.28 (Q2 2026, official price of CBAM certificates) × CBAM phase-in factor (2.5% in 2026, 48.5% in 2030). Actual liability depends on verified embedded emissions and SEFA benchmark deduction. Values shown are for illustrative default scenario only.
Carbon pricing in India: India has announced a Carbon Credit Trading Scheme (CCTS). As of 2026, the scheme is in early implementation and does not impose a qualifying carbon cost on CBAM-covered goods.
India's Carbon Credit Trading Scheme moved from framework to obligation: compliance runs from FY 2025-26, and binding intensity targets were notified for aluminium and cement in October 2025, with iron and steel still pending. A target is not yet a price paid — Article 9 deducts what has been effectively paid on the declared emissions, so the deduction arrives with the first compliance cycle and only to the extent that entities settle short positions rather than bank surplus. Document what your installation actually pays.
Our reading of India's own published measures as at September 2026, not an EU-published value — third-country carbon policy changes without warning. Confirm the current position with advisers in the country of production before pricing anything on it.
Indian BF-BOF steel at 4.27 tCO₂e/t default is well above the SEFA benchmark. Producers with actual emissions lower than this default — particularly those using DRI-EAF or efficient scrap-EAF routes — have a strong financial case for providing verified actual data. At the 2030 phase-in (48.5%) and the official price of CBAM certificates, the saving could exceed €100/t for the most efficient producers.
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Book a demoDefault values sourced from IR (EU) 2026/1740 Annex I (European Commission). Net costs are illustrative — actual liability depends on verified embedded emissions, SEFA benchmark deduction, and the applicable CBAM phase-in factor. Not legal or compliance advice.
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