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.
What are the next proposed changes?
On 17 December 2025 the Commission proposed (COM(2025) 989) extending CBAM to about 180 downstream products with high steel or aluminium content, plus anti-circumvention rules, with the extension proposed to apply from 1 January 2028. The Council agreed its position on 12 June 2026 and the European Parliament's environment committee adopted its report on 9 July 2026. As of October 2026 this is still a proposal, not law; the final product list may differ.
For India, the Ministry of Commerce and Industry's summary of the India-EU Free Trade Agreement (2026) says it includes an annex on CBAM aiming at most-favoured-nation treatment and dialogue on cutting emissions. It does not exempt Indian goods from CBAM.
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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