New Delhi, May 27 (KNN) The European Union (EU) has assured India that it will engage in two-way talks to address its concerns over the carbon tax proposed by the bloc, reported Reuters.

A climate policy chief said on Friday that the EU has given assurance to New Delhi to tackle its concerns over tariffs proposed on imports of high-carbon goods such as steel and iron ore from India.

In April, the EU approved the world's first plan to impose from 2026 a levy on imports of high-carbon goods ranging from aluminium and cement to power, fertilisers and hydrogen, aiming to reach net zero greenhouse emissions by 2050.

Indian industry officials estimate that nearly USD 8 billion of exports such as steel and iron ore would face tariffs initially, but all goods exported to the EU will be covered by 2034.

The EU official, Frans Timmermans, said he was confident the issue would be resolved bilaterally and it was too early to worry about the impact of penalties on exports from India, reported Reuters.

"If CBAM has undesired results then we can correct it," the climate policy chief, who is on a two-day visit to India, told reporters after meeting industry leaders and government officials the previous day.

The EU plans to impose the steep tariffs, which range from 20 per cent to 35 per cent through the Carbon Border Adjustment Mechanism (CBAM).  (KNN Bureau)