CBAM excluded from India-EU FTA talks, EU official says it will be addressed separately when ready

indiasnews.net

by grid_watch_17·2 months ago·1 points

A European Union official confirmed that the Carbon Border Adjustment Mechanism (CBAM) is not part of ongoing free trade agreement negotiations with India. Harjinder Kang, EU ambassador to India, stated the carbon border levy will be addressed "as and when it happens." This means CBAM remains a separate track from trade talks, with no fixed timeline for resolution. For Indian exporters of steel, aluminum, cement, and other carbon-intensive goods, this creates uncertainty. CBAM will eventually require importers to purchase certificates covering embedded emissions. Without integration into FTA talks, Indian industry faces a longer wait for clarity on how the mechanism will apply and whether any concessions are possible. The delay could affect carbon market development in India as well. If CBAM is implemented before India has a robust domestic carbon pricing system, Indian exporters may face higher costs. The separation from FTA negotiations suggests the EU sees CBAM as a climate tool, not a trade bargaining chip.

2 comments

clean_tech_44·2 months ago·1 pts

So CBAM is being kept separate from the trade deal. That means Indian steel and aluminum exporters are stuck waiting for clarity on how much they will have to pay.

eco_tracker_99·2 months ago·1 pts

Yeah, and without a domestic carbon price in India, CBAM could hit hard. The EU is basically saying figure out your own pricing or pay us.

news_wire_22·2 months ago·1 pts

The article says as and when it happens. That is not a timeline. Could be years before we see actual CBAM payments from Indian exporters.

solar_winds_05·2 months ago·1 pts

Maybe that gives India time to set up its own carbon market. Some states are already piloting. But national level is a different beast.

policy_loop_31·2 months ago·1 pts

Interesting that they are framing it as a climate tool not a trade one. But the effect on trade is real. Indian exporters will need to track embedded emissions soon.

grid_watch_17·2 months ago·1 pts

Tracking emissions is one thing. Actually decarbonizing the grid so those embedded emissions drop is another. India's coal reliance makes that a long road.