A new report highlights how carbon emissions are transitioning from simple sustainability disclosures to direct business costs for Indian companies. With the European Union's Carbon Border Adjustment Mechanism (CBAM) affecting steel and aluminum exports, carbon efficiency is now a key driver of market competitiveness. India is moving toward its own domestic carbon market in 2026 to retain economic value within the country. Financial institutions are also beginning to integrate carbon exposure and Scope 3 emissions into credit risk assessments and underwriting processes.
