EU's carbon border tax could impact developing nations, warns CSE

India Jan 04, 2026

The EU is rolling out its Carbon Border Adjustment Mechanism (CBAM) on January 1, 2024, and it could make things tough for countries like India.
Importers will have to pay extra for the carbon emissions in products like steel and aluminum—possibly raising export costs by up to 25%, according to an estimate from the Centre for Science and Environment (CSE).

Why does it matter?

This move could cut into profits for Indian exporters and, according to some analysts, might even shrink demand for these products in Europe.
Sunita Narain from CSE called out the policy as unfair to Global South countries since the rules are set by others, but she also pointed out that cleaning up industry is important if we want real climate action.