The European Union's Carbon Border Adjustment Mechanism (CBAM) began charging for the carbon emitted in making imported steel, aluminium, cement, fertilisers, chemicals, paper, glass and power-related goods. Indian steel and aluminium exporters are exposed because most Indian steel is made by the coal-heavy blast-furnace route rather than electric arc furnaces. Analysts expect higher costs for Indian exporters to the EU, with small and medium firms hit hardest.