Results for: CBAM

India’s Finance Minister Nirmala Sitharaman has expressed concerns over the European Union’s Carbon Border Adjustment Mechanism (CBAM), calling it a trade barrier that could hinder India’s green transition efforts. She argued that CBAM, which taxes imports with high carbon emissions, unfairly penalizes developing countries like India, which have significantly lower per capita emissions compared to developed nations. Sitharaman highlighted India’s substantial investments in green energy and its commitment to achieving net-zero emissions by 2070, emphasizing the country’s proactive approach to sustainable development.

India’s Commerce Minister Piyush Goyal revealed that the EU has proposed India create its own carbon tax mechanism instead of paying into the EU’s Carbon Border Adjustment Mechanism (CBAM). The CBAM, which is a tariff on carbon-intensive imports like steel and cement, is set to come into effect in 2026. While India considers the EU’s suggestion, Goyal expressed concerns that the CBAM could negatively impact the EU’s economy. He also clarified that the government has not reconsidered its stance on supporting Chinese investments in India, despite the Economic Survey suggesting leveraging the China-plus-one strategy for exports.