India rejected a European Union (EU) proposal to impose higher taxes on carbon emitting industries. The EU had suggested compensating for these taxes on Indian products entering its market.
An EU delegation, led by Gerassimos Thomas, Director General for Taxation and Customs Union at the European Commission, engaged with Indian officials to discuss the Carbon Border Adjustment Mechanism (CBAM).
The government communicated to the EU delegation that the proposed CBAM is inequitable and would increase costs in the domestic market.
In 2023, the EU had approved the world’s first plan to impose tariffs on high-carbon imports, aiming for net-zero greenhouse emissions by 2050. The European Commission delegation proposed that India could introduce its own carbon tax to finance advancements in supply chains and reduce carbon emissions, while maintaining its market share in the EU.
As reported by knnindia.co.in, India insists that the EU should follow the carbon emission rules set in the 2015 Paris Agreement, which offers developing nations more flexible emission-cutting targets compared to developed countries.
