EU-India ready to collaborate for carbon tax

The European Union is willing to collaborate with India to ease the administrative burden for businesses and enforcing its Carbon Border Adjustment Mechanism (CBAM).

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The European Union (EU) is ready to collaborate with India to ease the administrative burden for businesses and enforcing its Carbon Border Adjustment Mechanism (CBAM) which focuses on imposing tariffs on imports with a high carbon footprint entering the 27-member bloc.

An EU official stated, “We are keen on continuing fruitful discussions with the Government of India and Indian industry. We would like to have an open conversation in view of the common objective to reduce greenhouse gas (GHG) emissions globally, and we are ready to facilitate the understanding and implementation of the system as much as possible”.

The CBAM regulation offers possibility of signing an agreement with the EU to better understand carbon pricing in those countries.

Ajay Srivastava, co-founder of Global Trade Research Initiative (GTRI) said “CBAM has been finalized, and only the notification is due. From 1^st October 2023, all exports of steel, aluminium etc., will be monitored and Indian exporters will declare the carbon content of these products per tonne to their importers. But from 1^st January 2026, taxes will begin”.