The government is studying the possible impact of the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM) on India compared to other countries as it prepares to address the bloc's move to impose duties on imported carbon-intensive products.  In a detailed assessment of the potential implications of CBAM, officials believe the EU will also feel the pinch as the carbon tariff will increase inflationary pressures on the bloc. They said that with the EU already facing the risk of recession, CBAM could hurt European nations more than India. “The EU is bringing in CBAM in a way that will be inflationary for them. The cost of steel and aluminium in the EU will rise as (its) industry will have to meet the standards,” a senior government official told Business Standard.