India’s ministry of steel is exploring options to mitigate the impact of the Carbon Border Adjust Mechanism (CBAM) levy proposed by the European Union (EU) on steel exports from the country, secretary to the ministry of steel, N N Sinha, said in a statement on Thursday, October 5.
Mr. Sinha said that the government is discussing various options including holding bilateral negotiations with the authorities in the EU.
He said that tariffs under the CBAM will impact steel exports from India and the government has raised its concerns at both bilateral and multi-lateral trade forums with the EU.
It is assessed that levies under the CBAM will result in tariffs ranging from 20 percent to 30 percent on Indian steel exports to the EU by 2034.
The European Union this year approved the world’s first plan to impose tariffs on imports of high-carbon goods, including steel and cement, as part of its aim to reach net zero greenhouse emissions by 2050.
