JSW readies for CBAM era with 4 mt green steel unit
NEW DELHI : JSW Steel Ltd, India’s second-largest maker of the alloy, plans to establish a green steel manufacturing facility by 2030 as part of its response to the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM), said Jayant Acharya, joint managing director and chief executive. “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," Acharya said in an interview.
“It will have a capacity of 4 million tonnes (mt), and the plan is to start production by 2030. We are trying to complete it in two parts. We will do phase I (up to 2 mt) just before 2030, and the remaining construction will be going on and may spill over by one or two years." However, Acharya did not divulge the funding outlay for the project or the timeline for project approval.
“I cannot share anything more on the project. We will be seeking board approval." The EU’s CBAM transition, in effect from 1 October to 31 December 2025, will require companies to furnish extensive production and emission data for goods destined for the EU. On 1 January 2026, the tax phase of 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. During this transition period, the EU aims to create a pilot and learning phase involving all stakeholders, such as importers, producers and authorities.
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