Skip to content

Carbon strategy for Steel & Aluminium

The sharpest CBAM exposure of any Indian export

Steel and aluminium are at the centre of carbon-market pressure for Indian industry. Both are CBAM-covered goods facing an estimated 15–22% effective price pressure on EU-bound exports as the definitive mechanism phases in from 2026, and both are energy-intensive sectors relevant to India’s CCTS compliance market. Accurate, low embedded-emissions data is now a direct commercial advantage. We help producers quantify emissions to the EU methodology and build a credible route to reduce them.

What’s driving this

The carbon pressures on steel & aluminium

The forces making carbon a board-level issue for your sector right now.

  • CBAM definitive phase: an estimated 15–22% price pressure on EU-bound steel and aluminium
  • High direct and indirect (electricity) emissions that drive embedded-emissions intensity
  • CCTS / compliance-market obligations for energy-intensive metal production
  • EU buyers demanding verified product-level emission factors as a condition of supply

How we help

What we do for steel & aluminium

  • Installation- and product-level embedded-emissions calculation (direct + indirect)
  • Quarterly CBAM report preparation and submission support
  • Decarbonisation roadmap — scrap/EAF route, renewable power, green hydrogen readiness
  • CCTS applicability, baseline and compliance-pathway modelling
  • Verified emission factors to share with EU customers and reduce default-value penalties

Relevant services

Services for this sector

CBAM Advisory for Exporters

Practical support for Indian exporters affected by the EU Carbon Border Adjustment Mechanism (CBAM) — embedded-emissions calculation, reporting, and strategies to reduce your future carbon liability.

CCTS Compliance Advisory

End-to-end support for obligated entities under India’s Carbon Credit Trading Scheme (CCTS) — from baseline setting and target compliance to Carbon Credit Certificate (CCC) trading.

GHG Accounting & Carbon Footprint

Greenhouse-gas inventories aligned to the GHG Protocol and ISO 14064 — Scope 1, 2 and 3 — giving you an auditable baseline for targets, disclosure and carbon strategy.

ESG, BRSR Reporting & Net-Zero Strategy

BRSR and BRSR Core assurance readiness, ESG frameworks (GRI, TCFD) and a science-aligned net-zero strategy — structured, data-backed and investor-ready, in step with India’s 2070 net-zero goal.

FAQ

Steel & Aluminium & carbon — questions answered

Steel and aluminium are among the most CBAM-exposed Indian exports because they are emissions-intensive and ship significant volumes to the EU. Analysts estimate an effective price pressure in the region of 15–22% as the definitive mechanism phases in, though the exact figure depends on a product’s embedded emissions and the prevailing EU carbon price — which is why measuring and reducing embedded emissions matters commercially.

For steel, increasing scrap-based electric-arc-furnace production and decarbonising electricity are the highest-impact near-term levers; for aluminium, the carbon intensity of electricity dominates, so renewable power has the largest effect. We prioritise these against cost and feasibility, and ensure the reductions are captured in verified data your EU buyers will accept.

Ready to make sense of carbon credits?

Book a free, no-obligation consultation. We’ll map your obligations, opportunities and the fastest route to value.