PR No – 13
2nd December, 2023
EU’s CBAM : Prepare technically, negotiate hard and fight legally : PHDCCI
While the world leaders were deliberating on measures for controlling carbon emissions at COP28 at Dubai, PHDCCI organised a Conclave on “Implications of Carbon Border Adjustment Mechanism (CBAM) for India’s Metal Sector” on Friday, 1 December 2023, 3:30 pm, at PHD House, New Delhi, in hybrid mode with participation from Indian & foreign experts.
Mr Anil Chaudhary, Chair, Minerals & Metals Committee, PHDCCI, in his Theme address suggested Indian Government should negotiate with EU for removing Steel and Aluminium from CBAM regime, legally fight in WTO against CBAM. He appealed to Indian steel & aluminium companies to upgrade their technologies to reduce emissions to gain a competitive edge in the international market, since ESG standards were gaining more and more significance in the global marketplace. He expressed concern that while the carbon emission in India was 2.6 ton per 1 ton of steel produced; the global average was 1.85 ton per 1 ton of steel produced which was a cause of concern. He suggested that Government of India should come up with an Emissions Trading System (ETS) and Carbon Trading System on priority which is compatible with EU’s ETS. He highlighted that lack of funding mechanism for technology upgradation for controlling emissions and producing green steel was a major handicap which could result in decrease in profitability of Indian steel companies.
Dr. Anil Dhawan, Director General, Alloy Steel Producers Association of India, in his presentation informed that EU’s CBAM was more of a Trade related regulation than being an environmental regulation. He suggested that Indian steel producers should focus on producing Green Steel to become competitive in the international market and sell their products at a premium.
Chief Guest of the Conclave, Ms Renita Bhaskar, Minister Counsellor, Delegation of the European Union to India, explained the rationale behind the implementation of Carbon Border Adjustment Mechanism and gave the timelines involved. She informed that while the financial implications of CBAM will be experienced by India steel & aluminium exporters from 1 January 2026, the reporting mechanis has already kicked in and Indian exporters have to submit information regarding carbon emissions of their products during the transition period of October 2023 to December 2025.
Ms Delphine Sallard, DG TAXUD – CBAM, European Commission, Brussels, and her colleague, Mr Ivica Orlovic gave a technical presentation on the compliances to be completed by Indian steel & aluminium exporters.
Representatives of Knowledge Partner, Renoir Consulting, Mr Imad Alfadel, CFA & Mr Jagpreet Walia, Partner, in their address gave global perspectives of CBAM and its implementation. They informed that like EU, Australia and other countries too are likely to bring a regime similar to CBAM which will have an impact on Indiam steel & aluminium exporters.
Dr Ranjeet Mehta, Executive Director, PHDCCI, also graced the Conclave and released a Knowledge Report on the theme of the Conclave.
Mr Aman Sethi, Co-Chair, Minerals & Metals Committee, PHDCCI, in his Vote of Thanks at the Inaugural Session, advised Indian Steel & Aluminium companies to consider CBAM as an opportunity to become sustainable and consolidate exports in European market.
Other Speakers at the Technical Session included Mr Dan Maleski, CBAM Lead, Redshaw Advisors Ltd, UK; and Mr Samrat Sengupta, Vice President, EKI Energy Services Ltd, who explained about the implications of CBAM for Indian metal exporters
Ms Mili Dubey, Director, PHDCCI delivered the Welcome Address and Mr Punit Chaudhry, Secretary, PHDCCI, moderated the Technical Session.
The Conclave which was sponsored by S S & Company, was widely attended across the globe.
PHD Chamber of Commerce and Industry