Indian Industry Voices Concerns Over EU Carbon Tax Data Reporting Requirements

New Delhi, Sept 8 (KNN) Indian industry from sectors like steel have raised significant concerns regarding the onerous data reporting obligations imposed to adhere to the European Union's carbon tax decision.

The industry representatives in a meeting with the commerce ministry on Wednesday urged the government to address this issue with EU representatives.

The meeting was called by the ministry to discuss the implementation issues regarding the European Union's move to impose carbon tax or carbon border adjustment mechanism (CBAM).

As per reports, the Industry is of the view that the data sharing exercise is burdensome as the EU is seeking a lot of information.

As per an official, In the meeting, the industry stated that the EU is also seeking commercially sensitive information. They want reduction in this reporting requirement. 

“We discussed all those issues as to how that reporting will be done, we are trying to understand their problems," reported Business standard stating an official.

According to think tank GTRI co-founder Ajay Srivastava, CBAM imposes massive data compliance requirements on Indian exporters.

"For every consignment, exporters have to share hundreds of thousand data points, explanations, and methods used with EU counterparts. Neglect or misreporting leads to stiff penalties," Srivastava has said, adding, with low level of domestic data capture, Indian firms need to set up systems first before reporting data.

The official also said that the power ministry is working on the Carbon Credit Trading Scheme (CCTS). India is pressing the European Union for a mutual recognition agreement for these CCTS certificates as it helps the domestic players.

The meeting was attended by senior officials from the Department for Promotion of Industry and Internal Trade, ministries of Finance, Power, Steel and Mines, besides representatives of the steel and engineering sector.  (KNN Bureau)