India is actively preparing for the 29th UN Conference of the Parties of the UNFCCC (COP29), scheduled to take place in Baku, Azerbaijan, in November. The government is engaging with experts to finalize its strategy for the conference, which comes at a critical juncture amidst the European Union’s (EU) plans to impose a carbon border adjustment mechanism (CBAM), effectively a carbon tax on key imports from countries like India.
The EU’s proposed CBAM aims to levy a 25% tariff on energy-intensive goods like iron, steel, cement, fertilizers, and aluminum exported to Europe starting in January 2026. While the EU argues that CBAM is intended to level the playing field for domestic manufacturers adhering to stricter environmental standards and reduce carbon leakage, developing nations, including India, are worried about the economic consequences and potential trade disruptions.
India, representing the global south at COP29, will voice concerns about the CBAM’s impact on its exports and advocate for fair and equitable climate finance mechanisms. It will also push for a new collective quantified goal (NCQG) on climate finance, a critical element of the Paris Agreement, to support developing nations in their climate actions.
The Indian government has emphasized that it will prioritize protecting the interests of developing nations and will not retaliate with its own tariffs until a concrete CBAM proposal is presented. India is committed to sustainable development and emphasizes solutions rather than hurdles, as evidenced by its proactive role in previous COPs, including contributions to the loss and damage fund and the Global Stocktake.
Beyond climate finance, India’s agenda at COP29 is expected to include biodiversity conservation, recognizing the interconnectedness of ecological well-being and development. India’s initiatives like soil health cards for farmers, promoting natural farming practices, and participating in international big cat alliances highlight its commitment to preserving biodiversity.
The EU’s CBAM has sparked debate at multilateral forums, with developing nations arguing that countries should not dictate how others reduce emissions. India’s stance at COP29 will likely be a balancing act, advocating for its own economic interests while also promoting global cooperation on climate action and sustainable development. The conference is expected to focus on climate finance, adaptation, mitigation, and the implementation of the Paris Agreement, with the potential for significant implications for global trade, development, and the future of the planet.
