The EU Carbon Border Adjustment Mechanism puts a carbon cost on certain imports into the European Union, so they face a charge similar to EU producers under the EU emissions trading system. Aluminium is one of the covered sectors, alongside iron and steel, cement, fertilisers, electricity and hydrogen. Coverage includes unwrought aluminium and many semi-finished and finished aluminium products. A transitional reporting phase began in October 2023, and the definitive phase, with financial obligations for importers, began in 2026.
Why it matters when buying
- Indian exporters of aluminium products to the EU are asked by their customers for embedded emissions data, covering both direct emissions and, for some goods, electricity.
- Emissions of primary aluminium made with coal-based power are high, so the carbon cost can be significant.
- Using metal with verified lower emissions, or more recycled content, can reduce the burden; see green aluminium.
- Ask suppliers early for production-route and emissions data; it is harder to obtain after shipment.
Notes
Rules, default values and scope are being refined, so check current EU guidance or a specialist adviser. Read CBAM and green aluminium for Indian exporters and see HSN code for product classification.