New Delhi, Feb. 17 -- For years, any conversation around Environmental, Social, and Governance (ESG) frameworks felt like an unnecessary diversion in Indian boardrooms; a glossy chapter in annual reports meant to soothe finicky Scandinavian pension funds and tick a regulatory box. But as of 1 January 2026, that luxury phase is over.

In the new year, the European Union's Carbon Border Adjustment Mechanism (CBAM) has entered its definitive phase. What began on 1 October 2023 as a reporting-only exercise is now a financial obligation. From now on, EU importers must purchase carbon certificates covering the embedded emissions in imported goods. The first annual surrender of certificates will take place in May 2027, based on 2026 imports.

Fo...