India’s JSW Steel Limited plans to set up a 4 million mt per year capacity green steel manufacturing facility in response to the European Union’s (EU) proposed Carbon Border Adjustment Mechanism (CABM), a company official said on Tuesday, October 24.
“We are looking to set up a lower carbon-emitting facility for steel in the western part of India, subject to board approval. With this, we will be able to provide low-carbon steel for both the international and domestic markets," JSW Steel Limited’s joint managing director, Jayant Acharya said.
He said that, subject to approval of the board of directors, the company proposes to complete phase one of 2 million mt per year capacity by 2030 and the second phase within one or two years thereafter.
The project is likely to be located in a western Indian state.
However, the company did not divulge any details on investment or funding options for implementing the project.
The EU’s CBAM transition, in effect from October 1 to December 31, 2025, will require companies to furnish extensive production and emission data for goods destined for the EU. On January 1, 2026, the tax phase of the CBAM will begin. Importers will be required to purchase CBAM certificates to cover the embedded emissions of their products. The CBAM will be applied to a limited number of goods initially, including cement, iron and steel, aluminium, fertilizers and electricity, but the list will subsequently be expanded to cover all goods.