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Chapter 9 — Policy
Policy

ESG in an Age of Tariffs: Sustainability as Trade Strategy

EU CBAM requires importers to purchase certificates at €70-100/tonne since January 2026. ESG is now border compliance.

SB
Mr. Suman Balabommu
Founder, ReNote AI
February 2026 · 12 min

ESG frameworks have transformed from voluntary initiatives to mandatory requirements shaping global trade.

A company's approach to ESG now determines market access, tax obligations, and position within the global trading system.

ESG as Non-Tariff Barrier

Environmental standards serve as new rules of origin. CBAM adds carbon cost on existing duties.

Carbon as Trade Currency

By 2035, ESG performance will function like currency, determining market access and trade terms.

ESGCBAMSustainabilityCarbon Markets

Discussion

1 comment
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Sharad Mathur Mar 18, 2026
CBAM impact on 25,000-30,000 steel MSMEs is a wake-up call for cluster-level compliance.
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