Lok Sabha Question No. 3980 (UNSTARRED), answered on 2025-03-25
Subject: Carbon Border Adjustment Mechanism
Ministry: STEEL
Asked by: Shri B Y Raghavendra

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 3980 FOR ANSWER ON 25.03.2025

## CARBON BORDER ADJUSTMENT MECHANISM

3980. SHRI B Y RAGHAVENDRA:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government has conducted or proposes to conduct any study on the potential  impact  of  the  European  Union's  Carbon  Border  Adjustment  Mechanism (CBAM) on Indian steel exports;
- (b) the current trends in Indian steel exports to the EU including the volume and value of exports during the last five years, State and year-wise;
- (c)  the  steps  taken/proposed  to  be  taken  by  the  Government to  assist  Indian  steel exporters in complying with the carbon emission standards mandated by CBAM;
- (d) the details of measures being implemented to promote the adoption of low-carbon and green steel manufacturing technologies in India, State/UT-wise; and
- (e)  the  specific  initiatives  taken/proposed  to  ensure  that  Indian  steel  remains competitive  in  global  markets  despite  challenges  posed  by  CBAM  and  other environmental regulations?

## ANSWER

THE MINISTER OF STATE IN THE          (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a)to(e): Steel is a deregulated sector, and export of steel is dependent on factors such  as  global  market  conditions  and  policies  like  Carbon  Border  Adjustment Mechanism(CBAM), demand and supply, cost of input raw materials such as iron ore, coking coal etc. which are market linked.

Data on volume and value of finished steel export to the European Union (EU) during last five financial years is given below: -

| Finished Steel Export to EU                                                                    | Finished Steel Export to EU                                                                    | Finished Steel Export to EU                                                                    |
|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| Year                                                                                           | Quantity (in MnT)                                                                              | Value (Rs Crores)                                                                              |
| 2019-20                                                                                        | 1.95                                                                                           | 10,692                                                                                         |
| 2020-21                                                                                        | 2.51                                                                                           | 14,144                                                                                         |
| 2021-22                                                                                        | 3.58                                                                                           | 32,149                                                                                         |
| 2022-23                                                                                        | 2.49                                                                                           | 22,482                                                                                         |
| 2023-24                                                                                        | 4.03                                                                                           | 29,534                                                                                         |
| Source: Joint Plant Committee(JPC); MnT=million tonnes; Note: U.K. was part of EU upto 2020-21 | Source: Joint Plant Committee(JPC); MnT=million tonnes; Note: U.K. was part of EU upto 2020-21 | Source: Joint Plant Committee(JPC); MnT=million tonnes; Note: U.K. was part of EU upto 2020-21 |

The steps taken by Government to promote the adoption of low-carbon and green steel manufacturing technologies in India are as under:-

- I. Ministry of Steel has released a report titled "Greening the Steel Sector in India: Roadmap and Action Plan" in alignment with the recommendations of the 14 Task Forces constituted by this Ministry for this purpose.
- II. Ministry has released the Taxonomy for Green Steel to provide standards for defining and categorizing the low emission steel.
- III. Under  National  Green  Hydrogen  Mission  launched  by  Ministry  of  New  and Renewable Energy (MNRE), Ministry of Steel has awarded 3 pilot projects for use of hydrogen in steel sector.
- IV. National Solar Mission launched by Ministry of New and Renewable Energy in January, 2010 promotes the use of solar energy and also helps to reduce the emission of steel industry.

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