Indian trade negotiators have managed to secure a ‘forward-Most Favoured Nation’ Clause (MFN) on the carbon border adjustment mechanism (CBAM) under the India-EU trade deal, which was concluded on Tuesday (January 27). Before the US-EU deal, EU officials had maintained that CBAM is not a trade measure. Government officials said that India has also sought easier access to steel scrap, a critical input for low-carbon steel production, and arrived at an understanding. However, the government has plans to ramp up steel production using steel scrap with the arc furnace technology under the ‘green steel initiative’. Scrap steel is central to this transition, yet India’s constrained access to quality scrap remains a critical bottleneck,” ICRIER report in May 2025 by Amrita Goldar, Kumar Abhishek, and Sunishtha Yadav said.

Source: Indian Express January 27, 2026 18:32 UTC