New Delhi: The government is considering listing various green charges in the country to find out if the European Union can offset some of them. Carbon The tax is proposed on Indian steel, aluminum and fertilizer exports to the trading bloc under the Carbon Border Adjustment Mechanism (CBAM), which is scheduled to begin in October. The levy is proposed to be implemented from January 2026.
The Center has so far considered several ways to deal with the EU plan, arguing that the CBAM is not compatible with WTO rules and also violates the principles of the United Nations Framework Convention on Climate Change (UNFCCC). General But different responsibilities. The CBAM is expected to deal a blow to Indian steel and aluminum companies, which are exporting to the sector. Besides this, other countries like UK, US and Canada are also considering similar measures.
While one option is to approach the WTO’s dispute settlement body, there is a view in the government that the mechanism is non-functional and that the UNFCCC does not have an enforcement mechanism. The other option is to impose retaliatory tariffs on goods coming from the EU, something that remains on the table and a final decision is expected in the next few months.
While the government is engaging with the European Union on the issue, it is also looking to contribute to the district mineral fund along with some of the green taxes imposed in the country, forestry payments, and wants the proposed carbon tax to be included in the bill. Make up for Tax. “It will be a matter of negotiation and we will see what the EU has to say on the issue,” said an official. and the Ministry of the Environment.
Efforts are also being made to audit measures such as a mandate on renewable energy investments, and costs incurred by companies so that they too can be included in the count. Studies by some agencies have suggested steep costs for Indian companies, which could be higher than the tariffs imposed on their rivals from rich countries.
The Center has so far considered several ways to deal with the EU plan, arguing that the CBAM is not compatible with WTO rules and also violates the principles of the United Nations Framework Convention on Climate Change (UNFCCC). General But different responsibilities. The CBAM is expected to deal a blow to Indian steel and aluminum companies, which are exporting to the sector. Besides this, other countries like UK, US and Canada are also considering similar measures.
While one option is to approach the WTO’s dispute settlement body, there is a view in the government that the mechanism is non-functional and that the UNFCCC does not have an enforcement mechanism. The other option is to impose retaliatory tariffs on goods coming from the EU, something that remains on the table and a final decision is expected in the next few months.
While the government is engaging with the European Union on the issue, it is also looking to contribute to the district mineral fund along with some of the green taxes imposed in the country, forestry payments, and wants the proposed carbon tax to be included in the bill. Make up for Tax. “It will be a matter of negotiation and we will see what the EU has to say on the issue,” said an official. and the Ministry of the Environment.
Efforts are also being made to audit measures such as a mandate on renewable energy investments, and costs incurred by companies so that they too can be included in the count. Studies by some agencies have suggested steep costs for Indian companies, which could be higher than the tariffs imposed on their rivals from rich countries.