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India’s steel industry to look at renewable energy to avoid CBAM tariffs

To address carbon leakage, the EU introduced a carbon levy on imported goods.

Published

1 year ago

September 26, 2024

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The EU Emissions Trading System (ETS), launched in 2005, is a key element of the European Union’s climate change strategy and remains the world’s largest carbon market. Under the system, producers within the EU are required to offset their CO2 emissions by purchasing allowances from the EU ETS. This has led some companies to relocate their operations to regions with less stringent emissions regulations in order to reduce costs, a phenomenon known as ‘carbon leakage’. To counter this, the EU introduced a ‘carbon levy’ on imported goods, applying it to products from countries with lower emissions standards than those of the EU to prevent highly emission-intensive imports.

Building on this, the European Commission has proposed the world’s first ‘carbon border tax’, aimed at imports of carbon-intensive products such as steel, hydrogen, cement, fertilisers, and aluminium, in line with the EU’s climate goals. This tax is based on the EU’s domestic emissions regulations and includes fees for exceeding emissions limits. The Carbon Border Adjustment Mechanism (CBAM), which targets these sectors, is expected to affect around 4% of the EU’s total imports by value.

Indian steel exports to Europe, which account for over 20% of India’s total steel exports in the first half of FY25, may be significantly impacted. Italy, Belgium, Spain, and the United Kingdom are among the primary destinations. Indian steel production emits 2.6 tonnes of CO2 per tonne of steel, higher than the global average of 1.85 tonnes, giving the EU a rationale for imposing higher duties on Indian products. According to ICRA, the CBAM framework could affect 15-40% of India’s steel exports to Europe, with the impact expected to be felt from 2026 to 2034. Notably, the USA and Singapore are also likely to introduce similar policies.

Related Topics:'carbon leakage Carbon Border Adjustment Mechanism (CBAM)EU ETS (Emission Trading System)

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Jindal Stainless Launches First Stainless Steel Fabrication Unit in Mumbai

It will also serve as a centre of excellence for skill development, preparing India’s workforce for sustainable infrastructure projects.

Published

5 days ago

October 7, 2025

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Jindal Stainless, India’s largest stainless steel manufacturer, through its subsidiary Jindal Stainless Steelway (JSSL), has inaugurated its first stainless steel fabrication unit at Washivali, Patalganga, Mumbai. The 4 lakh sq ft facility is designed to serve the bridge sector, fabricating critical components such as girders, arches, nuts, bolts, and handles. The unit was inaugurated by CEO & CFO Tarun Khulbe in the presence of senior leadership.

Developed with an initial investment of Rs 1.25 billion, the facility strengthens Jindal Stainless’ position as a provider of end-to-end fabrication solutions for India’s growing infrastructure sector. The unit is expected to scale from 4,000 tonnes in FY25 to 18,000 tonnes annually by FY26-27, creating over 250 direct jobs and benefiting 150+ families indirectly. It will also serve as a centre of excellence for skill development, preparing India’s workforce for sustainable infrastructure projects.

Abhyuday Jindal, MD, Jindal Stainless, said, “This fabrication unit represents another step in our efforts to provide integrated solutions for customers. Bridges are critical connectors, and this facility ensures end-to-end quality management for safer and longer-lasting structures.”

Tarun Khulbe, CEO & CFO, added, “By combining material excellence with skilled fabrication and streamlined processes, we are bridging the gap between stainless steel production and high-quality infrastructure delivery.”

Jindal Stainless has supplied stainless steel for landmark projects nationwide, offering corrosion-free, durable solutions with lifespans exceeding 100 years. The Mumbai facility marks the company’s entry into direct fabrication, offering complete solutions to infrastructure developers. Future expansions will include solar-powered operations, aligning with the company’s ESG goals and commitment to sustainable growth.

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Kretinsky Exits Thyssenkrupp Steel Stake as JV Plans Stall

Stake sale clears path for talks with India’s Jindal Steel

Published

6 days ago

October 6, 2025

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Czech billionaire Daniel Kretinsky has sold his 20 per cent stake in Thyssenkrupp Steel Europe and abandoned plans for a 50:50 joint venture, the companies announced. The decision enables Thyssenkrupp to intensify discussions with Jindal Steel International for a possible acquisition.

The move follows stalled negotiations between Thyssenkrupp and Kretinsky’s EP Group amid union opposition. The European steel sector continues to face high energy costs, cheap Chinese imports and delayed hydrogen-based decarbonisation.

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Nippon Steel Buys 30% Stake In Canada’s Kami Iron Ore Project

Nippon Steel invests C$42 million in Canada’s Kami iron ore project.

Published

1 week ago

October 3, 2025

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Japan’s largest steelmaker, Nippon Steel, has acquired a 30 per cent stake in Canada’s Kami iron ore project, forming a joint venture with Australia’s Champion Iron and trading house Sojitz to secure supplies of high-grade ore for direct reduced iron production.

Through its subsidiary NS Canadian Resources, Nippon Steel has paid C$42 million (Rs 2.5 billion) of the total C$150 million (Rs 9 billion) investment, with the remaining C$108 million (Rs 6.5 billion) subject to an additional investment decision based on a feasibility study.

The deal builds on a December agreement in which Nippon Steel and Sojitz purchased a 49 per cent interest in the project from Champion Iron for C$245 million (Rs 14.7 billion). Under the new joint venture, Kami Iron Mine Partnership, the companies will advance the feasibility study for the Newfoundland and Labrador project.

Nippon Steel said the project’s high-grade ore is ideal for producing direct reduced iron, which, together with high-quality scrap, is crucial for operating large electric arc furnaces. The company plans to expand such furnaces to lower carbon emissions as part of its decarbonisation strategy.

Having recently acquired U.S. Steel, Nippon Steel has been strengthening its stakes in coking coal and iron ore mines worldwide to ensure long-term security of critical raw materials.