India faces mounting pressure to decarbonize its steel and aluminum industries as the European Union’s Carbon Border Adjustment Mechanism (CBAM) imposes carbon tariffs on high-emission imports. While large-scale nuclear power plants could be a long-term solution, Small Modular Reactors (SMRs) present a faster and more flexible alternative. Unlike traditional nuclear facilities that require extensive land acquisition, SMRs can be integrated into existing industrial sites, reducing delays and making them a viable option for energy-intensive industries. However, challenges remain, including the absence of commercially operational SMRs worldwide, strict safety regulations, nuclear liability laws, and limited private sector involvement.

Recognizing these challenges, the Indian government has set an ambitious target of 100 GWe of nuclear power by 2047 and allocated budget toward SMR research and development. The push for nuclear energy is largely driven by increased environmental pressure and India’s aim to meet climate targets. Another driver is tightening carbon regulations in the country’s key partners, the EU and the USA. In the EU, cross boarder adjustment mechanism – CBAM – requires Indian suppliers of steel and aluminum to report greenhouse gas (GHG) emissions and pay carbon tariffs starting in 2026. With coal-based captive power plants currently supplying these industries, a shift to cleaner, baseload energy sources like nuclear power is essential. The adaptability of SMRs makes them a potential game-changer, but regulatory reforms—including revising safety zones, nuclear liability laws, and the Atomic Energy Act—are necessary to facilitate their deployment.

CBAM Reports provides expert support to help exporters meet the EU’s CBAM regulatory requirements seamlessly. We have worked with Indian suppliers and can provide not only CBAM XML reports for importers but also Communication Template for Installations (CTI) and Monitoring Methodology Documentation (MMD) for suppliers. Contact us for professional assistance.

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