A new report highlights that carbon emissions are shifting from simple sustainability disclosures to actual business costs for Indian companies. With the domestic carbon market operationalizing in 2026, factors like the EU's Carbon Border Adjustment Mechanism (CBAM) are making carbon efficiency a key driver of export competitiveness for steel and aluminum sectors. Financial institutions are also beginning to treat carbon exposure as a credit risk. The report emphasizes that Scope 3 emissions within supply chains often pose a greater risk than direct operations, influencing how lenders and insurers evaluate long term commercial viability.
