Sweden Commits to Helping India Adopt Sustainable Practices for CBAM Compliance

Sweden has committed to assisting India in developing sustainable industrial practices to comply with the European Union's Carbon Border Adjustment Mechanism (CBAM), as affirmed by State Secretary Sara Modig of the Ministry of Environment and Climate. Ambassador Jan Thesleff reinforced this pledge, emphasizing Sweden's readiness to facilitate technology transfer and collaborative partnerships to guide Indian companies through the regulatory challenges posed by CBAM.

CBAM imposes tariffs on European importers purchasing carbon-intensive goods from nations with higher emission standards than the EU, potentially affecting Indian exports significantly. Analysis by the Sandberg think-tank estimates that Indian iron and steel exporters could face approximately €301 million in CBAM fees, the highest among global suppliers, underscoring the urgency for decarbonization strategies in sectors like steel and cement.

During discussions on potential support, Modig highlighted Sweden's leadership in green technology adoption across multiple industries, stating that bilateral collaboration includes direct handholding for Indian firms. This assistance aims to enable a smoother transition to low-carbon production models, particularly as India and the EU advance toward a Free Trade Agreement amid ongoing concerns over CBAM's protectionist implications.

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Modig noted India's rapid industrial expansion, with steel production growing at 10-12 percent annually, presents a unique opportunity to integrate green technologies from the outset rather than retrofitting existing infrastructure. She expressed confidence in India's capacity to lead the global shift toward green steel, leveraging its economic momentum and governmental ambition to drive sustainable scalability.

With ten of twenty FTA chapters already aligned between India and the EU, the upcoming visit by the EU negotiating team signals accelerated progress. Sweden's proactive stance positions it as a key partner in equipping India to meet CBAM requirements, fostering mutual benefits in trade, environmental goals, and long-term industrial competitiveness.

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