NEW DELHI: The European Union’s Carbon Border Adjustment Mechanism (CBAM) on India puts cost pressure on exporters of steel, cement and aluminum thereby impacting their margins and competitiveness but the long term picture is also full of possibilities, claims Akanksha Sharma, Global ESG Head, STL.
“While initial ripples of lowered competitiveness and potential GDP dips are undeniable, the long-term picture is full of possibilities, both bright and daunting. By embracing low-carbon technologies and demonstrating CBAM-compliance, Indian businesses can forge a trust bridge with environmentally conscious consumers, potentially expanding their reach and fueling GDP growth,” Sharma told this paper.
When asked how India can remain competitive in the EU market, Sharma said “It’s time to rewrite the narrative, not just from “Made in India” to “Designed with Europe in Mind”, but from competitor to trusted partner in Europe’s journey towards a sustainable and prosperous future.”
The EU is spearheading the global sustainability drive, and for Indian businesses, that’s a gold mine, Sharma stated. She added that investing in clean technologies, optimizing production processes, and prioritizing eco-friendly materials will showcase commitment to green practices, not just as compliance but as a core value. Success in the EU market is a marathon, not a sprint.
Meanwhile, with regard to India’s ESG (Environmental, Social, and Governance) regulations, she said they are currently at a crossroads.
“The lack of a unified framework creates confusion and inconsistency for businesses, making it difficult to navigate compliance and compare performance across different sectors. This complexity can hinder the adoption of robust ESG practices, particularly for smaller companies lacking the resources to navigate the intricate web of regulations,” Sharma stated.
