New Delhi, Dec. 31 -- Indian steel and aluminium exporters are likely to face sharp pricing pressure in the European market from January 1, 2026, as every shipment entering the European Union will carry a carbon cost under the Carbon Border Adjustment Mechanism (CBAM), according to a report by Global Trade Research Initiative (GTRI).

The report said that from January 1, 2026, CBAM will move from a reporting phase to a payment-linked commercial reality. As a result, many Indian exporters may have to reduce export prices by 15 to 22 per cent so that EU importers can use this margin to pay the CBAM-related carbon cost.

GTRI stated "From 1 January 2026, every shipment of Indian steel and aluminium entering the EU will carry a carbon cost as...