India’s industrial exports, including aluminium, to the UK are at risk from 2027 carbon duties
India and the United Kingdom have recently concluded negotiations on a long-anticipated Free Trade Agreement (FTA) aimed at unlocking bilateral trade potential and reducing tariff barriers. The deal is expected to usher in smoother market access for Indian goods, from textiles and engineering products to aluminium and steel. But even before implementation begins, an invisible tariff threatens to erode these gains: the United Kingdom’s upcoming Carbon Border Adjustment Mechanism (CBAM).
Set to take effect from January 1, 2027, the UK CBAM is designed to level the playing field between domestic and imported goods by placing a carbon cost on high-emission imports. In doing so, it mirrors the European Union’s CBAM, which enters its operational phase in 2026, albeit with some differences in mechanism and implementation.
FTA sweeteners meet climate tariffs
Unlock full access – sign up for FREE.
Key benefits
Henkel unveils first low temperature cleaner for sustainable aluminium can production in Brazil
Next articleA future forward collab between IAI and WBCSD for effective beverage can recovery
Grow with
AL Circle
