Indian exporters are adequately prepared to meet emerging sustainability-related requirements in international markets, according to senior government officials who addressed a dedicated awareness session on the European Union Carbon Border Adjustment Mechanism (EU CBAM) in New Delhi on 19 August. The session, organised by the Department of Commerce in collaboration with the National Accreditation Board for Certification Bodies (NABCB) and the Engineering Export Promotion Council (EEPC), drew around 100 participants including exporters and industry stakeholders.

What the Session Covered

Amit Verma, Joint Secretary, Department of Commerce, highlighted the Department's ongoing efforts to build awareness among exporters and facilitate a clearer understanding of evolving regulatory requirements. He reaffirmed that the Department remains engaged with industry and relevant stakeholders and is working toward practical, workable solutions for Indian exporters navigating the new carbon compliance landscape.

Technical sessions provided participants with a comprehensive overview of the EU CBAM framework — covering its applicability, the range of products subject to the mechanism, obligations for exporters, methods for calculating embedded emissions, and the data collection and reporting requirements involved. Accreditation and verification mechanisms were also addressed in detail.

Why Accreditation and Data Matter

N. Venkateswaran, CEO, NABCB, underscored the importance of a credible accreditation and verification ecosystem in building confidence in emissions-related data. He noted that robust verification is central to supporting compliance with CBAM requirements and ensuring that Indian exporters are not disadvantaged in European markets.

Pankaj Chadha, Chairman, EEPC, stressed the importance of awareness and preparedness across the entire export value chain — including the timely availability of accurate emissions-related data from suppliers and other stakeholders. He also called for effective verification mechanisms to help Indian exporters meet their compliance and reporting obligations.

The Broader Compliance Challenge

The EU CBAM, which is being phased in as part of the European Union's broader Green Deal framework, imposes a carbon cost on imports of certain goods — including steel, aluminium, cement, fertilisers, and electricity — based on the greenhouse gas emissions embedded in their production. For Indian exporters, particularly in the engineering and metals sectors, this represents a significant new compliance burden requiring reliable emissions data and third-party verification.

This comes amid growing global scrutiny of carbon-intensive supply chains, with major trading blocs increasingly linking market access to environmental standards. The CBAM's transitional reporting phase is already under way, making preparedness a near-term operational priority rather than a future consideration.

Department's Continued Engagement

The Department of Commerce reaffirmed its commitment to continued engagement with exporters, industry associations, and relevant institutions to build awareness and capacity on emerging sustainability-related trade regulations. The interactive format of the session allowed exporters and industry representatives to seek direct clarifications on compliance and reporting issues — a model the Department is expected to replicate across other export clusters.

With the EU's carbon border rules tightening progressively, Indian exporters who establish robust emissions tracking and verification systems early are likely to be better positioned to protect their market access in Europe.