EU CBAM explained for Indian exporters: what it is and how to prepare
A plain guide to the EU Carbon Border Adjustment Mechanism as of October 2026: covered goods, the 2026 definitive period, the 50-tonne threshold, default and actual values, CBAM certificates, proposed changes, and a checklist for Indian MSME exporters.
Overview
The EU Carbon Border Adjustment Mechanism (CBAM) is a charge on the greenhouse gas emissions embedded in certain goods imported into the European Union: iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. The EU importer pays by surrendering CBAM certificates, but Indian exporters are asked to supply the emissions data, so their numbers decide the cost.
Photo: "JNPT Port container handling" by Ccmarathe, CC BY-SA 4.0, via Wikimedia Commons
This article explains CBAM as of October 2026, based on Regulation (EU) 2023/956, its 2025 amendment and the European Commission's CBAM pages and Questions and Answers (last updated 15 October 2026). It is a plain-language guide, not legal or customs advice. Always check the official text and the Commission's CBAM website before acting.
Sources: European Commission, Carbon Border Adjustment Mechanism (CBAM) Questions and Answers, last updated 15 October 2026; European Commission, Carbon Border Adjustment Mechanism (main page); European Commission, CBAM definitive regime; European Commission, CBAM legislation and guidance; European Commission news: Officially published: Simplifications for CBAM (20 October 2025); European Commission news: CBAM successfully entered into force on 1 January 2026 (14 January 2026); European Commission, CBAM communication and news; European Commission, Price of CBAM certificates; European Parliament press release: CBAM: Parliament adopts simplifications (10 September 2025); Regulation (EU) 2023/956 establishing a carbon border adjustment mechanism (EUR-Lex); Regulation (EU) 2025/2083 amending Regulation (EU) 2023/956 (EUR-Lex); European Parliamentary Research Service: Extension of CBAM scope to downstream goods and anti-circumvention measures (7 September 2026); Ministry of Commerce and Industry, India's Free Trade Agreements (2025-26): Key Highlights
This article was prepared with AI assistance and checked by the GreenEye team against the sources shown in each section.
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