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Carbon Border Adjustment Mechanism (CBAM): Impact on India's Steel Exports to the EU and Carbon Tax Incidence

Author

Listed:
  • Amrita Goldar

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Bishwanath Goldar

  • Kumar Abhishe

  • Sunishtha Yadav

  • Poulomi Bhattacharya

Abstract

The present study is undertaken by applying the ICRIER Samriddhi Model (GTAP-E based), which evaluates the impact of the imposition of CBAM on India's steel exports, thus indicating a pathway India should adopt if the EU imposes a carbon border tax. The study results indicate that CBAM is likely to significantly impact India's steel exports to the EU, causing a fall in India's steel exports to the EU by 24 per cent. The paper also gauges whether the imposition of CBAM would lead to a significant reduction in carbon emissions and finds that a reduction of 1 per cent in aggregate emissions will occur in the global steel industry.

Suggested Citation

  • Amrita Goldar & Bishwanath Goldar & Kumar Abhishe & Sunishtha Yadav & Poulomi Bhattacharya, 2026. "Carbon Border Adjustment Mechanism (CBAM): Impact on India's Steel Exports to the EU and Carbon Tax Incidence," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 433, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    • Handle: RePEc:bdc:wpaper:433
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