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India — CBAM Guide

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.

Iron & SteelCementAluminium
First declaration deadline
30 Sep 2027
De minimis threshold
50 t / year
Carbon pricing
CCTS announced — no deduction yet
Price of CBAM certificates, Q2 2026
€75.28 / tCO₂e
CBAM phase-in 2026
2.5% of full liability
CBAM phase-in 2030
48.5% of full liability

Trade Profile

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.

EU Default Values — India

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

ProductSectorDefault
tCO₂e/t
Net cost
2026 €/t
Net cost
2030 €/t
Grey Portland cement
CN 25232900
Cement1.4800€119.49€74.59
Anhydrous ammonia
CN 28141000
Fertilisers3.2800€243.15€128.43
Urea (solid)
CN 31021019
Fertilisers2.2200€164.57€86.93
Ammonium nitrate
CN 31023090
Fertilisers2.3400€173.47€91.63
Steel semi-finished (BF-BOF)
CN 72071114
Iron & Steel4.2700€344.75€215.21
Unwrought aluminium
CN 7601
Aluminium1.8700€150.98€94.25
Hydrogen
CN 28041000
Hydrogen14.0300€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.

Article 9 — Carbon Price Deduction

CCTS targets binding — first compliance pending

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.

Compliance Insight for India Exporters

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.

Take your actual data to the platform ↗

Four Steps to Compliance

1
Register in the CBAM Operators Portal
Upload installation identification data: legal name, UN/LOCODE, GPS coordinates, contact person. This enables your EU buyer's authorised declarant to access your verified data.
2
Establish a monitoring plan
Document all energy inputs, production outputs, and emission calculation methodology per the governing EU implementing regulation. This is the foundation for any verified data submission.
3
Engage an accredited verifier
Appoint a third-party verifier accredited under EN ISO/IEC 14065 by an EA-recognised National Accreditation Body. A physical site visit is required before verified data can be submitted.
4
Share verified data with your EU buyer
Provide verified specific embedded emissions to your EU buyer's authorised CBAM declarant before the September 2027 declaration deadline. Verified actual data replaces default values — typically at significantly lower cost.

Key Deadlines

2026
First full reporting year begins
CBAM Regulation fully in force
30 Sep 2027
First CBAM declaration due
Covers goods imported in 2026
2028+
Annual declarations continue
Phase-in increases each year to 2034
2034
Full CBAM liability
100% of certificates required

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On your own figures

This page prices Indiaon published defaults. The platform computes the default-vs-actual gap, the benchmark deduction and the 2026–2034 trajectory on your installation’s own data, and produces the report your EU buyer asks for.

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Default 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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