New Delhi, July 3: The PHD Chamber of Commerce and Industry (PHDCCI) organised “Carbon Shift India 2026 – CBAM Readiness for Indian Industry: Aligning Policy, Innovation & Competitiveness” at PHD House, New Delhi, bringing together senior government officials, policymakers, industry leaders, financial institutions, sustainability experts and technology providers to deliberate on India’s preparedness for the European Union’s Carbon Border Adjustment Mechanism (CBAM), industrial decarbonisation, carbon markets and green finance.
The conference commenced with the welcome address by Dr. Jatinder Singh, Deputy Secretary General, PHDCCI, in the presence of Guest of Honour Mr. Satyaki Rastogi, Chief General Manager, SIDBI, and Guest of Honour Mr. Saurabh Diddi, Director, Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India. The session also featured Mr. Ravinder Bhan, Senior Director, Indian Steel Association (ISA); Mr. Ajay Sharma, Joint Director, National Accreditation Board for Certification Bodies (NABCB); and Mr. R. R. Rashmi, Distinguished Fellow – Green Shipping, TERI, as Special Guests, who shared their perspectives on India’s preparedness for CBAM and the country’s low-carbon industrial transition.
Welcoming the participants, Dr. Jatinder Singh said that with the European Union’s CBAM entering its definitive phase from 1 January 2026, carbon competitiveness has become a permanent determinant of global market access. He highlighted that the EU, India’s third-largest trading partner with bilateral goods trade of nearly €118 billion, is a key destination for Indian exports in sectors such as iron & steel, aluminium, cement and fertilisers. Referring to the early impact of CBAM, he noted that India’s steel and aluminium exports to Europe have already witnessed pressure, signalling the urgency for industry to strengthen emissions monitoring and carbon reporting systems. He emphasised that while large enterprises may be better equipped to respond, MSMEs require urgent support through technology adoption, affordable verification infrastructure, cleaner energy access and simplified reporting mechanisms. He further called for strengthening India’s carbon pricing framework, accelerating industrial decarbonisation and building robust institutional capacity for Measurement, Reporting and Verification (MRV) to ensure India’s long-term competitiveness in global trade.
Addressing the conference, Mr. Satyaki Rastogi highlighted that CBAM is likely to impact not only exporters but the entire manufacturing value chain, with MSMEs bearing the highest compliance burden due to the costs associated with technology upgradation, audits, certification and verification. He stressed the need for coordinated policy interventions, common testing and certification facilities, awareness and capacity-building programmes, and affordable financing solutions to facilitate the transition. Highlighting SIDBI’s commitment to sustainable industrial growth, he informed that SIDBI has been promoting green finance since 2011, and today over 40% of its ₹50,000 crore direct lending portfolio supports energy-efficient and environmentally sustainable manufacturing.
Delivering the Government’s perspective, Mr. Saurabh Diddi stated that while CBAM directly affects sectors such as steel and aluminium, its implications extend across the entire supply chain, including indirect exporters and MSMEs. He informed that the Government is actively engaging with the European Union and the United Kingdom to secure recognition of India’s Carbon Credit Trading Scheme (CCTS), facilitate acceptance of Indian Accredited Carbon Verification Agencies for CBAM compliance, and explore comparative benchmarking mechanisms that better reflect India’s energy profile. He also announced that draft compliance targets for the steel sector under the CCTS have been released for public consultation, while trading under the Indian Carbon Market is expected to commence by October 2026, creating a domestic ecosystem to support industrial decarbonisation and reduce compliance costs.
Speaking on behalf of the steel industry, Mr. Ravinder Bhan observed that CBAM has emerged as a significant trade barrier for India’s steel sector, the world’s second-largest steel producer, with an installed capacity of around 220 million tonnes and a target of 300 million tonnes by 2030. He stressed that while leading steel manufacturers are investing heavily in decarbonisation technologies, MSMEs continue to face significant financial and technical challenges in meeting international verification requirements. He advocated internationally recognised carbon credits, affordable verification mechanisms, public procurement of green steel, accelerated deployment of green hydrogen and resource-efficient technologies, and greater diversification of export markets to safeguard India’s competitiveness.
Sharing the broader policy perspective, Mr. R. R. Rashmi said that India’s response to CBAM should go beyond compliance and focus on building a strong domestic carbon governance framework. He called for establishing a nationwide emissions inventory and data management system, mandatory energy and emissions reporting, and cost-effective MRV mechanisms covering industries of all sizes. He also recommended mutual recognition of Indian verification agencies with the European Union and the creation of a dedicated carbon transition support fund under India’s Carbon Credit Trading Scheme to help industries, particularly MSMEs, invest in cleaner technologies and improve their global competitiveness.
Mr. Ajay Sharma, Joint Director, National Accreditation Board for Certification Bodies (NABCB), highlighted the pivotal role of accreditation, conformity assessment and internationally recognised certification systems in enabling Indian industry to meet evolving global sustainability requirements. He emphasised that strengthening India’s domestic verification ecosystem and building internationally credible accreditation mechanisms will be critical to ensuring reliable Measurement, Reporting and Verification (MRV), reducing compliance costs and enhancing the global acceptance of Indian exporters in carbon-regulated markets.
A common theme across the inaugural session was the need for India to transition from awareness to action by strengthening domestic carbon markets, expanding access to green finance, promoting clean technologies, reducing compliance costs for MSMEs and creating internationally credible emissions reporting systems. Speakers agreed that while CBAM presents immediate challenges, it also offers an opportunity to modernise India’s manufacturing sector, accelerate decarbonisation and enhance long-term global competitiveness.
The conference continued with two insightful technical sessions on “CBAM Compliance & India’s Industrial Readiness” and “Industrial Decarbonisation, Clean Tech & Green Finance”, bringing together leading policymakers, industry experts, financial institutions and technology providers to deliberate on practical pathways for carbon compliance, clean technology adoption, green finance, carbon markets and industrial decarbonisation. The conference concluded with a shared resolve among stakeholders to strengthen collaboration and accelerate India’s transition towards a sustainable, resilient and globally competitive manufacturing ecosystem, well-positioned to thrive in the emerging low-carbon global economy.