India Terms EU Carbon Tax under CBAM Unfair; Vows To Fight

New Delhi, Nov 7 (KNN) Union Minister for commerce and industry Piyush Goyal on Tuesday raised concerns over the European Union’s move to impose carbon tax on imports from certain sectors.

He assured the domestic industry that India will not accept such unfair taxes and will fight to get a fair deal for producers and exporters. The minister said that India has already flagged its concerns over the carbon tax with the European Union (EU) and in the WTO (World Trade Organization).

The CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) will come into effect from January 1, 2026, but from October 1 this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU.

“I will assure you that we are extremely concerned about CBAM. We are taking it up with the WTO very seriously. We shall try to work and fight to get a fair deal for the Indian producers and exporters and nobody is complacent about CBAM,” he said.

The minister said the world will have to take a view on this tax and India would on-board other countries on the issue to address this “very serious” concern.

“We will always find innovative solutions but I can assure you that India will not be accepting unfair taxes or levies being put on the Indian steel or aluminum industry or any other industry,” he said adding “let us not be scared of it and find solutions which will be to our advantage going forward”.

Goyal highlighted that the EU would have to allow “common but differentiated responsibility” to India on the issue as New Delhi is a developing economy.

According to a report of think tank Global Trade Research Initiative (GTRI), CBAM will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026.

(KNN Bureau)