Articles 15th Jan 2026

CBAM Downstream Extension Proposal : Structure and Likely Impact on Indian Industry

Authors

Ambarish Sathianathan
Ambarish SathianathanPartner | Mumbai
Sanjay NotaniPartner | Mumbai
Aayush Rastogi
Aayush RastogiPrincipal Associate | Noida

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Our Partners Sanjay Notani, and Ambarish Sathianathan along with Principal Associate Aayush Rastogi authored an article “𝗖𝗕𝗔𝗠 𝗗𝗼𝘄𝗻𝘀𝘁𝗿𝗲𝗮𝗺 𝗘𝘅𝘁𝗲𝗻𝘀𝗶𝗼𝗻 𝗣𝗿𝗼𝗽𝗼𝘀𝗮𝗹: 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗮𝗻𝗱 𝗟𝗶𝗸𝗲𝗹𝘆 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗜𝗻𝗱𝗶𝗮𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆” in Lexology.

The piece explores the European Commission’s proposal to extend the Carbon Border Adjustment Mechanism (CBAM) to downstream products like automotive parts and machinery from 1 January 2028. This extension could likely impact USD 1.1 billion of Indian exports, in sectors like automotive components, mechanical and electrical machinery, and metal furniture.

The article underscores the urgent need for Indian producers to establish robust monitoring and compliance systems to protect their EU market access and turn this challenge into a strategic opportunity rather than a compliance risk.

Read the article here

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