India has formally joined the United States and China in a World Trade Organization dispute against the European Union's Carbon Border Adjustment Mechanism (CBAM). The WTO agreed to review the concerns after Russia raised the issue, and the case centers on whether CBAM unfairly restricts trade from developing countries. The EU argues CBAM is necessary to prevent carbon leakage and support its climate goals, but India says the border tax creates unequal market access for steel, cement, and other exports. In response, India is working to get its verification agencies approved by the EU and is building its own domestic carbon trading system to align with the mechanism. This dispute highlights the growing friction between richer nations setting climate rules and developing economies that fear being left behind. The outcome could shape how carbon border measures are designed globally, and it carries direct implications for exporters, carbon market developers, and anyone tracking cross-border climate policy.
