India explores all options to deal with EU's proposed carbon border tax

Begins sector-wise analysis to assess the impact

Shreya Nandi New Delhi
carbon tax

The EU’s CBAM tool aims at putting a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU

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India is exploring all possible options to deal with the European Union’s (EU’s) proposed Carbon Border Adjustment Mechanism (CBAM) and has initiated sector-wise analysis of the carbon border tax’s impact on its domestic industries, such as steel and aluminium, among others.
With countries getting more conscious towards climate change, the CBAM is a measure aimed at preventing carbon leakage. The measure is not India-specific and will be applicable to all countries.
On the one hand, India may consider any retaliatory measure at a multilateral — the World Trade Organisation — level, on the other hand, it’s initiating a sector-wise analysis to assess if the CBAM can act as a non-tariff trade barrier, a person aware of the matter told Business Standard.

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First Published: Apr 20 2023 | 7:19 PM IST

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