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Brief on the EU Carbon Border Adjustment Mechanism (CBAM)

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The definitive regime and what it means for Indian exporters

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The EU's Carbon Border Adjustment Mechanism (CBAM) is reshaping how carbon-intensive imports in Europe – including steel, aluminium, cement, fertilizers, hydrogen, and electricity – are priced and reported, with the definitive regime having taken effect in 2026. This brief provides an overview of how CBAM works, what it means for European reporting declarants and Indian manufacturers, key deadlines, and the steps businesses should take to stay competitive.

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