Aluminum exports from India to Europe are expected to be impacted by the Carbon Border Adjustment Mechanism (CBAM). CABM which officially takes effect in 2026 aims to realize climate neutrality in the EU by 2050.
According to statistics, India has an annual production capacity of primary aluminum of 4.1 million tons, accounting for 6% of total global production, of which 56% is for export.
Crisil, an Indian rating agency, said that India is one of the aluminum producers with the lowest cost in the world due to its integrated operating capability and low power costs as it has coal-based captive power plants.
Indian aluminum manufacturers are likely to lose their competitiveness due to CBAM while competing with producers in the Middle East, Canada, Norway, and Iceland, whose CO2 emissions are much lower. Besides, Middle Eastern countries’ further capacity expansion was expected to weaken India’s exporting competitive advantage.
Tags: Aluminium, CABM, eu, Exports, India
Recent Posts
G7 countries task IRENA to monitor Group’s renewable energy progress
Kongsberg Maritime hybrid technology to optimise energy use and cut emissions
ICRA says oil import bill to rise to $101-104 billion in FY25
Green Park Energy raises $30 m to export hydrogen, ammonia
Europe awards green hydrogen funding for 7 projects
H2SITE receives approval from LR for ammonia cracking technology
Volvo Penta provides power solution for retrofit electric CTV
India grants approval for marine insurance cover to Russian tankers