Sweden has announced its commitment to assist India in developing a sustainable industrial framework that aligns with the European Union’s Carbon Border Adjustment Mechanism (CBAM). Sara Modig, State Secretary at Sweden’s Ministry of Environment and Climate, made this declaration during recent bilateral talks focused on green industry collaboration. She emphasized Sweden’s readiness to support India’s transition to low-carbon manufacturing, highlighting the nation’s expertise in technology transfer across various sectors.
CBAM is a significant aspect of the EU’s climate strategy, imposing fees on imports from countries with higher carbon emissions compared to EU standards. According to estimates, Indian exporters of iron and steel could incur CBAM-related charges of approximately €301 million (around ₹3,000 crore), making it a critical issue as India and the EU work towards finalizing a Free Trade Agreement (FTA). Swedish Ambassador to India, Jan Thesleff, reiterated the country’s willingness to guide Indian industries through the compliance process.
Modig noted that India’s rapidly expanding steel industry presents a unique opportunity for sustainable growth. With an annual growth rate of 10 to 12 percent, India is positioned to enhance its industrial growth in an environmentally friendly manner. With ten of the twenty FTA chapters closed, upcoming negotiations are set to advance this partnership, aligning India’s industry with sustainability objectives.
