Latest news with #CBAM
Indian Express
a day ago
- Business
- Indian Express
India, EU close 7 out of 23 chapters in trade deal; last round to take place in September
As trade negotiations pick up pace amid US tariff threats, India and the EU have managed to close two more chapters in the latest round of talks and narrow gaps in services, a government official said on Tuesday. The two sides have now agreed on seven out of 23 chapters in the ongoing negotiations for what could be the largest trade agreement India has ever entered into. Satya Srinivas, special secretary in the Department of Commerce, said the last (12th) round of talks concluded last week in Brussels. 'We have exchanged our offers on services and non-services… there were discussions on that. We also discussed key interests in market access related to goods as well… The next round of talks (will be held) in the first week of September,' Srinivas said. However, the Carbon Border Adjustment Mechanism (CBAM) is not part of the EU trade negotiations, Hervé Delphin, EU Ambassador to India, told The Indian Express last month. 'I have come to discover that CBAM is one of the best-known acronyms in India. First, CBAM is not a trade measure. It is not part of trade and the FTA. It's about compliance with our climate agenda to accelerate decarbonisation,' he said. On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal an FTA deal by year-end. Special Secretary in the Department of Commerce Rajesh Agrawal said that the 10th and 11th rounds of talks are likely to be held in August here and in October in Malaysia. 'We are engaged in the negotiations. Nine rounds of talks have been concluded so far… The progress so far has been chequered — not what it could have been — but the good part is that we are moving forward on many aspects, especially on customs and trade facilitation,' Agrawal said. Further, he said talks are also progressing on issues like technical cooperation, SPS (sanitary and phytosanitary) and TBT (technical barriers to trade) collaborations. 'We hope there is going to be one physical round in August and… another in October in Malaysia. So we hope that in these two rounds, we should be able to make good progress and try to have some kind of conclusion when the ASEAN-India Summit takes place at the end of October. The endeavour is in that direction. Let's see how much we can achieve,' he said. The review of the agreement is a long-standing demand of domestic industry, and India is looking forward to an upgraded pact that will address the current asymmetries in bilateral trade and make trade more balanced and sustainable. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Time of India
2 days ago
- Business
- Time of India
CBAM may cost Indian steel exporters €551 million by 2034: Report
The imposition of European Union's Carbon Border Adjustment Mechanism (CBAM) could increase the cost of Indian steel manufacturers to €551 million by 2034, potentially reducing their global competitiveness, according to a latest report by Grant Thornton Bharat. The CBAM entered its reporting phase in Q3 2024 and is set to impose financial obligations from January 2026. It is an import duty on a product manufactured in a country that has more lax climate rules than the EU. According to the report, flat-rolled iron and steel products, which make up nearly 80 per cent of India's steel exports to the EU, are expected to be among the most affected. Readiness gap between Indian and EU producers The report highlights a gap between Indian and EU steel production emission levels, suggesting a potential financial burden for Indian exporters unless emissions are aligned with EU standards. While India has begun its decarbonisation efforts through schemes like the Carbon Credit Trading Scheme, DEEP, ADEETIE, and Green Steel Certification, the report notes that the transition remains resource-intensive—especially for micro, small and medium enterprises (MSMEs). 'CBAM poses a significant challenge for auto component exporters, especially MSMEs reliant on fossil fuel-based energy. To remain competitive, we must accelerate the shift to cleaner energy sources and adopt sustainable manufacturing practices. A targeted approach is critical for a smooth and equitable adaptation,' said Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat. Support services and policy collaboration To assist Indian businesses, Grant Thornton Bharat has introduced a range of CBAM-aligned services. These include emission mapping, financial impact assessments, supplier engagement, and green steel certification support. The firm is also empanelled with the Ministry of Power and the National Institute of Secondary Steel Technology (NISST) to facilitate industry-wide preparedness. Amit Kumar, Partner and Climate Ecosystem Leader, Grant Thornton Bharat, stated, 'The EU's CBAM represents a pivotal shift in global trade, urging industries to align with low-carbon benchmarks. For Indian exporters, this transition demands financial and technological support. Collaboration between the EU, Indian policymakers, and the private sector is crucial.' As the deadline for full CBAM enforcement approaches, the report calls for coordinated action between government, industry, and international partners to ensure a just and sustainable transition for Indian exporters.
Economic Times
5 days ago
- Business
- Economic Times
Greet Europe with Car'bon' Jour: Turning CBAM from trade barrier to green opportunity for India
Go green, and steel up on others Climate change is influencing international trade, with EU and Britain leading efforts to introduce carbon taxes on imports under a Carbon Border Adjustment Mechanism (CBAM). While the concept is not new, it takes on fresh urgency in the context of ongoing India-EU FTA negotiations. With a mutually agreed timeline of finalising the deal by end-2025, this is an opportune moment to examine potential implications of CBAM for India's merchandise trade and manufacturing - and how policy could possibly turn this challenge into an opportunity for growth, development and green January 1, 2026, the EU is set to impose full compliance and carbon costs on six carbon-intensive imports: iron and steel, aluminium, electricity, cement, fertilisers, and hydrogen. India exports about 27% of its total iron, steel and aluminium exports to the EU, valued at around $8 bn. These, according to GTRI, are estimated to become 20-35% costlier in the EU market due to the proposed carbon tax. As CBAM expands to other sectors - in line with the EU's overarching goal of net-zero emissions by 2050 - it will likely impact other Indian exports such as minerals, machinery, chemicals, auto parts, pharmaceuticals and textiles. It is, therefore, viewed as a serious non-tariff barrier for India. While the official objective is to eliminate the cost advantage that foreign producers enjoy over EU-based green manufacturers, the measure will increase the cost of imports from developing countries while generating significant revenue for the has raised concerns about CBAM, advocating for exemptions - especially for MSMEs - and calling for more equitable alternatives to 'unilaterally imposed standards'. At the same time, FTA is important for India, offering access to the EU's 27-member market of nearly 450 mn consumers. Key sectors like textiles, leather, pharmaceuticals, automobiles, IT services and agriculture are expected to benefit from increased exports. The agreement could also boost foreign investor confidence and facilitate access to advanced technologies, strengthening India's domestic manufacturing ecosystem and supporting globally competitive exports and employment the other hand, FTA offers the EU access to India's large, fast-growing market, and supports efforts to diversify supply chains in a geopolitically sensitive environment. European companies are expected to invest in manufacturing linkages, fostering ancillary industries and joint ventures - particularly with MSMEs. India-EU cooperation on climate goals could also contribute to global progress toward net-zero India and other developing countries view CBAM as WTO-incompatible and unfair, especially as the EU's methodology for calculating embedded emissions remains under scrutiny. During CBAM transition phase, Indian exporters of carbon-intensive goods are using default values published by European Commission as benchmark respond effectively, India must develop scientific, sector-specific tools for reliable measurement of embedded emissions based on actual data. It must also establish a domestic carbon-pricing mechanism to assign a financial value to the carbon content of goods. With the EU recently considering carbon credits from overseas projects as part of its climate strategy, India could tap into this opportunity - once institutional mechanisms for pricing and trading carbon emissions are in place.A long-term strategy is essential for a successful green transition, which will hinge on access to advanced technologies, climate finance and incentives for the private sector to adopt clean energy, and produce green steel, cement and other one suggestion to neutralise CBAM is to introduce a domestic carbon tax that could be offset against the EU's CBAM under a double-taxation avoidance framework. Besides aligning with India's trade interests and climate commitments, a phased domestic carbon tax could also serve as a revenue source for financing green addressing the CBAM barrier is critical for India to realise the benefits of FTA, it also presents a broader strategic opportunity. This could be a defining moment for India to pilot sustainable manufacturing on a wider scale, aligning with its national emissions reduction India can emerge as a key voice for the developing world in climate governance. It could spearhead a consortium of like-minded nations to promote tech transfer, establish a climate fund to support decarbonisation - especially in hard-to-abate sectors - and advocate for phased, equitable implementation of CBAM-like policies. The writer is former secretary, ministry of labour and employment, GoI. (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Why this one from 'Dirty Dozen', now in Vedanta fold, is again in a mess The deluge that's cooling oil prices despite the Iran conflict Can Indian IT protect its high valuation as AI takes centre stage? Engine fuel switches or something else? One month on, still no word on what crashed AI 171 As GenAI puts traditional BPO on life support, survival demands a makeover Stock Radar: ITC Hotels hits fresh record high in July – time to buy or book profits? Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus These large- and mid-cap stocks can give more than 24% return in 1 year, according to analysts Suited for the long term, even with headwinds: 8 stocks from healthcare & pharma sectors with upside potential of up to 39%
Focus Malaysia
6 days ago
- Business
- Focus Malaysia
ASEAN biomass: Malaysia's moment to lead; Elridge 'ready to contribute to this momentum':
AS ASEAN Foreign Ministers convene for the 58ᵗʰ ASEAN Ministerial Meeting (AMM) under Malaysia's ASEAN Chairmanship 2025 tomorrow (July 11), the region finds itself at a critical juncture. With 'Inclusivity and Sustainability' as the guiding theme, Malaysia has a rare opportunity to not only lead diplomatically but to define a practical, ASEAN-led renewable energy agenda. Few solutions are as immediate and scalable as biomass. While often over-shadowed by solar and hydroelectric power, biomass offers a dependable alternative which is particularly suited to ASEAN's agricultural economies. Malaysia alone produces more than 90 million dry tonnes of solid oil palm biomass annually, according to the Malaysian Palm Oil Board (MPOB). These residues, including palm kernel shells (PKS), mesocarp fibres and empty fruit bunches can be processed into a clean, high-calorific-value biomass fuel to power industrial systems or electricity grids. In light of growing trade protectionism and the imposition of carbon-linked tariffs such as the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM), Malaysia now has a strategic opportunity to future-proof its exports by advancing domestic biomass utilisation and green energy value chains. This would enable the country to monetise its palm residues not only through international sales but also by generating electricity, decarbonising its industrial base and supplying clean alternatives to fossil fuels. ASEAN's energy transformation As the 2025 ASEAN Chair, Malaysia is well-positioned to lead a regional biomass initiative. This can include establishing harmonised certification standards, promoting intra-ASEAN trade in sustainable fuels and launching joint research through ASEAN Green Fund mechanisms. There is also scope to develop regional carbon credit frameworks tied to verified biomass usage that can enable ASEAN industries meet decarbonisation targets through home-grown solutions. Japan offers a compelling model. Faced with limited land for solar and wind, it embraced biomass through its Feed-in Tariff (FiT) programme. By end-2022, 586 biomass power plants were operational, generating a combined 4.1 gigawatts (GW) of electricity. These plants form part of a broader pipeline of nearly 900 approved projects under the scheme which totalled 8.3 GW in capacity, according to the USDA FAS Japan Biomass Annual 2023. Malaysia has the fundamentals to replicate this success fort there are plentiful agricultural residues, an established palm oil industry and available land for facility development. With clear policies and targeted fiscal incentives such as accelerated capital allowances for biomass infrastructure, the nation can unlock private investment, spur public-private partnerships and scale solutions such as biomass co-firing in power plants, decentralised heat networks and off-grid boiler installations for industry. Rising demand, growing capability Demand for certified, sustainable biomass fuels is growing across Asia, particularly in countries like Japan where biomass is increasingly used in energy systems and industrial fuel switching. At Elridge Energy, we are proud to contribute to this momentum. In FY2024, more than 85% of our revenue was generated from PKS sales. Following our IPO (initial public offering) in August 2024, we have channelled proceeds into developing three new PKS production facilities in Kuantan, Pasir Gudang and Lahad Datu. The Kuantan and Pasir Gudang facilities are to be completed by this year, while the Lahad Datu facility is set to be completed by end-FY2026. Each site is designed for up to 240,000 metric tonnes in annual capacity across two production lines. These sites not only boost our output but reinforce our commitment to sustainability and traceability. Malaysia's ASEAN Chairmanship 2025 presents a timely opportunity to embed biomass in ASEAN's broader energy and climate strategy. Through coordinated policy and collaboration, the Southeast Asian region can accelerate biomass deployment, reduce its dependence on imported fossil fuels and foster green jobs in rural and industrial communities alike. This is also a chance to build a truly inclusive green economy by creating sustainable jobs in rural communities where the feedstock originates. Biomass is not just a complementary resource; it is a base-load enabler of energy security, carbon reduction and inclusive development. With abundant feedstock and export-ready capabilities, Malaysia can lead ASEAN toward a low-carbon, self-reliant future. At Elridge Energy, we are committed to this shared vision – not only as producers and exporters but as advocates for a cleaner, more connected ASEAN energy ecosystem. – July 10, 2025 Oliver Yeo is the Executive Director and CEO of Elridge Energy Holdings Bhd, a listed Malaysian renewable energy company specialising in the manufacturing and export of biomass fuels such as palm kernel shells (PKS) and wood pellets. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Bangkok Post
7 days ago
- Business
- Bangkok Post
Saha Group Launches Floating Solar Project with Ratch
Bangkok, July 9, 2025 – Saha Pathana Inter-Holding Public Company Limited (SPI) is advancing its commitment to sustainable industrial development through a partnership with Ratch Pathana Energy Public Company Limited (SCG), signing a Memorandum of Understanding (MoU) to jointly develop clean energy projects across all Saha Group Industrial Parks. The first initiative under this partnership is a floating solar project installed on a reservoir adjacent to the runway at Saha Group Industrial Park – Lamphun, designed to supply electricity to industrial customers and support Thailand's renewable energy goals. The MoU and Private Power Purchase Agreement (Private PPA) signing ceremonies were held at the SILK 1 meeting room, Bangkok International Trade & Exhibition Centre (BITEC), Bangna. This milestone reflects the Saha Group's proactive vision in embracing clean energy amid evolving global environmental regulations such as the European Union's Carbon Border Adjustment Mechanism (CBAM) and Thailand's forthcoming Climate Change Act. The adoption of renewable energy is seen as a strategic lever for enhancing Thailand's industrial competitiveness while supporting national goals set forth in the Power Development Plan (PDP) and Alternative Energy Development Plan (AEDP), which aim for renewables to comprise over 30% of the energy mix by 2037. The Lamphun initiative builds on the success of a pilot floating solar project at the Saha Group Industrial Park – Sriracha, launched in 2021. Mr Sontaya Tabkhan, President of Saha Pathana Inter-Holding PCL, stated: 'This project underlines our strong commitment to integrating clean energy systems into the industrial sector through collaboration with a capable partner like RATCH Group. Together, we aim to develop a sustainable model that advances Thailand's industrial sector with a balanced focus on economic, social, and environmental factors. In an era where renewable energy is a key pillar of future growth, this initiative not only addresses environmental concerns but also boosts customer and investor confidence, particularly among those focused on ESG and Net Zero commitments.' Mr Klahan Suksawai, Managing Director of Ratch Pathana Energy PCL, added: 'The Floating Solar Project has an installed capacity of 4.12 megawatts and is being developed by Sahacogen Green Co., Ltd., a subsidiary of Ratch Pathana Energy under the RATCH Group. Electricity generated will be supplied to AGC Micro Glass (Thailand) Co., Ltd., with commercial operations scheduled to begin in the second quarter of 2026. This marks a significant step in expanding our renewable energy footprint in collaboration with Saha Group, demonstrating our shared commitment to sustainable, cost-effective, and globally competitive industrial development.'
