NEW DELHI: In a move aimed at empowering MSMEs in the iron and steel sectors to reduce carbon emissions, the Services Export Promotion Council (SEPC), which operates under the Government of India’s Ministry of Commerce and Industry, has partnered with the reputed CleanCarbon.ai and has launched “Carbon Cell”. This cell is a dedicated end-to-end Carbon Border Adjustment Mechanism (CBAM) reporting support platform.
Nilesh Bhattad, CEO of CleanCarbon.ai, speaking about this unique initiative, said, “Through our collaboration with the Ministry of Commerce and Industry, we will support thousands of MSMEs in achieving seamless carbon compliance and reporting under the new EU regulation. This partnership ensures effective and timely assistance for Indian manufacturers and suppliers to the EU". He further added, “Once CBAM goes into definitive Phase in January 2026, a carbon tax will be imposed on the embedded emissions of products, potentially increasing landing costs by 8–10%, depending on emission levels.”
He also made it clear that manufacturers who are found to be non-compliant “will be unable to ship their products after January 2026—making early compliance essential.”
Speaking on the objective of this strategic initiative, he added, “This is aimed to empower Indian exporters, especially Micro, Small, and Medium Enterprises (MSMEs) in the iron and steel sectors, with seamless CBAM compliance and uninterrupted trade with the European Union".
The Carbon Cell will also work to ensure that imported carbon-intensive goods reflect a fair cost for the carbon emissions generated during their production. It also aims to promote cleaner industrial practices in non-EU countries by levelling the playing field for EU industries and preventing carbon leakage.
The CBAM is currently in a transitional phase from 2023 to 2025, with full implementation slated for 2026. This phased rollout is intended to align with the gradual removal of free allowances under the EU Emissions Trading System (ETS), and supports the EU’s broader goal of industrial decarbonisation.
It is noteworthy that CleanCarbon.ai is India’s first CBAM compliance company, providing robust tools and consultancy services for carbon emissions calculation, documentation, and CBAM report submissions in accordance with EU mandates.
“This launch marks a significant step in India's efforts to promote green trade and support exporters in aligning with evolving international sustainability standards,” remarked Nilesh Bhattad. He added that CleanCarbon.ai is India’s leading CBAM compliance platform, offering advanced AI-driven solutions to track, calculate, and report embedded carbon emissions in supply chains.
“Focused on simplifying the complexities of global carbon regulations, CleanCarbon.ai has enabled more than 200 exporters with their CBAM compliance and has delivered 10,000 plus CBAM reports,” he said.
He also noted, “With the EU’s CBAM legislation now being phased in, ‘Carbon Cell’ will serve as a critical resource hub for MSMEs, offering training, tools, and one-on-one support to ensure timely, accurate, and cost-efficient compliance.”
The ceremonial launch was attended by Abhay Sinha, Director General of SEPC, Nilesh Bhattad, Founder and CEO of CleanCarbon.ai, along with other members from SEPC and the CleanCarbon team.
Speaking at the event, Manish Dabkara, panel head of SEPC Environmental Services, stated, “CBAM signals a shift in global trade norms. The Carbon Cell is poised to help lakhs of MSMEs, especially in the iron and steel sector. CBAM compliance ensures uninterrupted business with the EU. It's an opportunity to lead with sustainability and redefine our export edge. Indian exporters must align with low-carbon practices to stay resilient, and relevant in the EU market.”
The EU Carbon Border Adjustment Mechanism was introduced in October 2023. As the European Union’s initiative, it ensures that imported carbon-intensive goods reflect a fair cost for the carbon emissions released during their production. It aims to promote cleaner industrial practices in non-EU countries by levelling the playing field for EU industries and preventing carbon leakage. The CBAM is currently in a transitional phase from 2023 to 2025, with full implementation beginning in 2026. This phased rollout supports the EU’s broader goal of industrial decarbonisation by aligning with the gradual removal of free allowances under the Emissions Trading System (ETS).