CBAM Carbon Price Published: Implications for Indian Exporters

The taxation phase of the Carbon Border Adjustment Mechanism (CBAM) commenced on 1 January 2026. As part of this, the first quarterly carbon price was published by the European Commission on 7 April 2026, establishing the basis for calculating carbon tax on imported goods.

Current carbon price and implications

The current carbon price is €75.36 per tonne (approximately INR 8,260 per tonne based on the current exchange rate). EU importers must pay this cost for emissions above the free allowance of imported goods.

Therefore, to remain competitive, Indian exporters should first assess the tax liability of their exported products. For this, exporters should adopt a structured three-stage approach.

What should Indian exporters do

Exporters should first calculate emissions based on accurate process-level data. These should then be compared with free emission allowances to determine excess emissions and the carbon tax liability.

What comes next?

Going forward, exporters should assess emission reduction strategies to lower their tax liability. In addition, they should ensure that their data and records are audit-ready, as CBAM audits are expected to begin in January 2027.

Stay tuned for more insights!

Contributed by

Aniruddha Pandav Lead Consultant — Social Lab Environmental Solutions Pvt. Ltd.

Social Lab Environmental Solutions offers reliable and affordable sustainability solutions in the fields of CBAM, carbon neutrality, ESG compliance, EPR & waste circularity. To know more, please visit our website, Social Lab_, and follow us on _LinkedIn for sectoral updates.