The Indian government is considering a plan to cover the verification costs that micro and small steel exporters face under the European Union's carbon border adjustment mechanism (CBAM). This policy would reduce the administrative burden on smaller players who must prove their emissions to avoid paying the full EU carbon tax at the border. The move targets the steel sector, which is a major source of industrial emissions and a key focus of the EU's carbon border levy. If implemented, the reimbursement would help small Indian steel mills stay competitive in the European market without absorbing the full cost of third party emissions verification. The policy signals that India is taking the EU carbon border tax seriously and is looking for ways to support its domestic industry through the transition. It also raises questions about how verification standards will be enforced and whether similar support will extend to other sectors like cement or aluminum.
