India to Address EU’s Carbon Tax Plan, Ready to Retaliate: Commerce Minister Piyush Goyal

India to Address EU's Carbon Tax Plan, Ready to Retaliate: Commerce Minister Piyush Goyal

VoM News Desk | December 8, 2023 | 05:34 PM IST | Breaking News, Climate & Environment | Follow on Google News

India to Address EU’s Carbon Tax Plan, Ready to Retaliate: Commerce Minister Piyush Goyal image/PTI

India to Address EU’s Carbon Tax Plan, Ready to Retaliate: Commerce Minister Piyush Goyal

Commerce and Industry Minister Piyush Goyal assured today that India will confront the European Union’s plan to impose a carbon tax on certain imports, known as the Carbon Border Adjustment Mechanism (CBAM).

The CBAM is set to be implemented from January 1, 2026, but starting October 1 this year, domestic companies in seven carbon-intensive sectors will have to share carbon emissions data with the EU.

Goyal expressed confidence in addressing the CBAM issue, stating, “Bharat will address the problem of CBAM with confidence, and we will find solutions.

We will see how we can convert CBAM to our advantage if it comes in. Of course, I will retaliate. You need not worry about it.”

According to the Global Trade Research Initiative, CBAM could result in a 20-35% tax on select imports into the EU.

India, with 26.6% of its exports of iron ore pellets, iron, steel, and aluminum products going to the EU, stands to be affected.

Goyal emphasized that India had successfully retaliated against the US in the past when facing additional customs duties on certain steel and aluminum products.

Highlighting the need for the electric vehicle mission, Goyal urged the industry to support the growth of electric vehicles.

He called for the rapid replacement of old public buses, trucks, and private vehicles with electric ones.

Goyal cited the example of Mumbai’s BEST, transitioning to electric buses and turning into a profit-making entity.

Regarding foreign exchange reserves, Goyal reassured that India’s reserves of USD 604 billion as of December 1 are sufficient for the next 5-6 years, considering the current levels of current account deficit or trade deficit.

In closing, Goyal mentioned that countries like Chile and Peru are exploring trade pacts with India.

India to Address EU’s Carbon Tax Plan, Ready to Retaliate: Commerce Minister Piyush Goyal: For any Error, Rectification

VoM News Desk

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