Updated October 2026
Key facts
- The definitive phase began on 1 January 2026, after a reporting-only transition from October 2023.
- At default emission values, Indian blast-furnace hot-rolled coil carries a CBAM cost of roughly €254 per tonne.
- Each 0.1 tCO₂ cut per tonne of steel saves about €8 per tonne at current prices.
- Free allowances in the EU ETS are phased out by 2034, so the charge rises over time.
What it means for Indian mills
European buyers now compare suppliers on carbon-adjusted landed cost, backed by verified emissions data. Mills that cannot supply their own data are charged on default values, which are high for India. Cutting fossil coal with biochar lowers embedded emissions, and documented biochar supply gives your verifier the evidence. Biochar for steel plants