Page 146 - CW E-Magazine (10-10-2023)

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TRADE BARRIER

Exporters seek clarity on EU’s carbon certifi cation

Exporters are awaiting clarity on However, the full implementation of On its part, the government has
how the European Union (EU) will CBAM is scheduled for January 2026 insisted that India’s version of carbon
give certifi cation on various industries’ and the mechanism would then translate credits should get internationally recog-
carbon footprint when the EU Car- into a 20-35% tax on select imports into nised on solar and green technology
bon Border Adjustment Mechanism the EU. to balance out the impact of such
(CBAM) kicks in from October 1, even rules.
as the government tries to get exemp- “We are awaiting clarity on how
tion for small businesses. certifi cation will be done after the India has asked the EU to recog-
audit of the carbon footprint of when nise its Carbon Credit Trading Scheme,
CBAM will impact the cement, iron it comes into effect in October,” said pushed for mutual recognition of its
and steel, aluminium, fertiliser, elec- Mr. Arun Kumar Garodia, Chairman of carbon certifi cates with the EU and
tricity and hydrogen sectors. Engineering Export Promotion Council carve outs for the micro, small and
(EEPC) of India. medium enterprises (MSMEs).
Traders only have to provide in-
formation on the emissions embedded India’s exports to the EU in 2022-23 While CBAM has no exemptions
in their imports, subject to the mech- amounted to $74.8-bn, with mineral for MSMEs, carve outs for small busi-
anism without paying any fi nancial fuels, electrical machinery and iron and nesses are crucial as 40-45% of the
adjustment from October 1. Compa- steel being the top products. In 2022, affected companies in these sectors
nies would have to seek compliance 27% of India’s exports of iron, steel and are MSMEs, an offi cial said. They had
certifi cates from the EU authorities aluminium products worth $8.2 billion exemptions in the EU’s earlier Emis-
to comply with the CBAM norms. went to the EU. sion Trading System.

DOWNSTREAM PLANS
ONGC mulls $20-bn investment in two petrochemical

facilities

Oil & Natural Gas Corp. Ltd. While demand for petrochemicals is ing increased recovery of chemicals from
(ONGC) is considering investing expected to remain robust due to their crude compared to conventional refi ning,
around $20-bn to set up two petro- wide range of uses across large indus- in the range of 50-70%.
chemical projects in India, either inde- tries, strengthening ONGC’s chemicals
pendently or in partnerships with other business will also help the state-run oil In its annual report for FY23, ONGC
companies, as per a report in the Mint explorer cut its reliance on the volatile oil observed that petrochemicals demand is
newspaper. market and improve profi tability in the expected to remain strong and will con-
long run. tinue to be a key driver of oil and gas
“We may do it on our own or in a demand in the future. With this objec-
JV (joint venture). It depends on eco- “We want to prepare ONGC for a tive, the company is collaborating with
nomics and what happens in respective new world. In the new world, we feel that other entities to explore opportunities
states,” ONGC’s Chairman and CEO our petrochemical footprint has to go up,” in the oil-to-chemical (O2C) business,
Mr. Arun Kumar Singh was quoted as Mr. Singh said, adding that the demand refi ning and petrochemicals, it said. “We
saying in the report. for oil and its derivatives is likely to grow are also planning to set up two greenfi eld
in India till 2040-45. “Right now, for the O2C plants in India,” the company had
Noting that the company is looking next 10-15 years, we see commodity stated in the annual report. ONGC aims
at sites to set up the planned projects, petchem picking up very strong. So, you to substantially expand its chemical and
Mr. Singh said the new plants will likely have both sides: you have polypropylene petrochemical portfolio from the current
be announced in the current fi nancial side, then you have ethylene side,” he 4.2-million tonnes per annum (mtpa) to
year. said, adding that the focus is on achiev- 8-mtpa by 2030.

146 Chemical Weekly October 10, 2023

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