CBAM Verification 2026: EU Export Guide for Indian Manufacturers
The European Union's Carbon Border Adjustment Mechanism, better known as CBAM, is entering a new and more demanding phase. What started as a carbon tax on basic raw materials like steel, aluminium, cement, and fertilisers is now moving deeper into the manufacturing chain. This shift, called the CBAM downstream expansion, could bring around 180 new finished and semi-finished products under the carbon tax net from January 2028. For Indian exporters who sell engineering goods, auto parts, machinery, and metal products to Europe, this is not a distant policy update. It is a business decision that needs planning today. What Is CBAM and Why Is It Expanding in 2026? CBAM is the EU's carbon border tax. It makes importers pay a price for the carbon emissions embedded in certain goods entering the European market. The goal is to stop "carbon leakage," where companies shift production to countries with weaker climate rules to avoid EU carbon costs. Since January 2026, ...