What's New :
UPSC Interview Guidance Program. Register here...

India expresses concerns over EU's carbon tax

  • Published
    18th May, 2023

India has expressed its apprehensions to the European Union regarding the Carbon Border Adjustment Mechanism (CBAM).


  • The issue was discussed at the India-EU Trade and Technology Council’s ministerial meeting in Brussels.
  • The meeting also saw India and the EU agreeing to ink a Memorandum of Understanding for cooperation in the semiconductor sector.
    • India and the United States had on March 10 signed MoU to pave the way for joint projects and technology partnership for manufacturing semiconductors.


  • India-EU trade reached a historical high, with €120 billion worth of goods traded in 2022.
  • India and the European Union have set ambitious goals of achieving net zero emissions by 2070 and 2050, respectively.
  • They have also made commitments to halt and reverse biodiversity loss by 2030 and to promote a circular economy.

Brief of CABM

  • The CBAM initiative proposed by the EU aims to levy 20%-35% taxes on carbon-intensive goods exported to any of its 27 member nations starting from January 2026.
  • It imposes importers and non-EU manufacturers to pay for the carbon emission linked to the goods they sell within EU limits.
  • Starting January 2026, the Indian steel, cement, aluminium, and fertiliser industries will pay steep Carbon Border Tax (CBT) imposed by the European Union (EU).
  • The CBAM will walk on the footprints of ETS, i.e., importers will be required to purchase carbon import certificates/ permits for each metric ton of CO2 brought into the EU through specified goods.
GS Mains Classes GS Classes 2024 GS Classes 2024 GS Classes 2024 UPSC Study Material

Verifying, please be patient.

Our Centers

DELHI (Karol Bagh)

GS SCORE, 1B, Second Floor, Pusa Road, Karol Bagh, New Delhi - 110005 (Beside Karol Bagh Metro Station Gate No. 8)

Get directions on Google Maps

BHUBANESWAR (Jaydev Vihar)

GS SCORE, Plot No.2298, Jaydev Vihar Square, Near HCG Day Care, BBSR - 751013

Get directions on Google Maps

LUCKNOW (Aliganj)

GS SCORE, 2nd Floor, B-33, Sangam Chauraha, Sector H, Aliganj, Lucknow, UP - 226024

Get directions on Google Maps

Enquire Now