India will fight against the EU’s imposition of its carbon border adjustment mechanism (CBAM) at the WTO, and has invited other countries with a similar stance on the issue to fight “against such unfair taxes and ensure a fair deal for producers”, minister of commerce and industry Piyush Goyal said on Wednesday, November 8.
The minister said that the CBAM as proposed by the EU is a “serious concern” as it will impact exports of certain items including steel to the region, adding that the entire world needs to take a view on this and that Indian industry will not accept such unfair practices.
“We shall try to work and fight to get a fair deal for the Indian producers and exporters and nobody is complacent about the CBAM. 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 aluminium industry or any other industry,” he said.
“Let us not be scared of it and find solutions which will be to our advantage going forward. The EU will have to allow ‘common but differentiated responsibility’ to India which is a developing economy,” Goyal said.
The CBAM or carbon tax will come into effect from January 1, 2026, but from October 1 this year Indian domestic companies from seven carbon-intensive sectors, including steel, cement, fertilizer, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU.