The upcoming meeting of Prime Minister Narendra Modi and European Commission (EU) chairman Ursula von Der Leyen is expected to discuss India's concerns in the case of carbon customs and forest harvesting regulation. However, this organization has indicated not to give any concession to India.
The European Union (EU) believes that some concerns about India's carbon boundary adjustment mechanism (CBAM) are 'non -reasonable' but it is ready to negotiate. A senior EU official said, “There are some specific concerns about India's CBAM and its impact. We are certainly committed to solving the pyre of all sides around the world affected by CBAM .. We are eager to share our experiences and operations of CBAM with India. We believe that some concerns can be non -justified but we will be ready to resolve them.
This officer said on the regulation of deforestation, 'We will solve these concerns (regulation of deforestation). We can re -assure our Indian friends and market operators that we will accept their high criteria with compliance with the regulation of our deforestation. He will be accompanied by EU Commissioners from 21 countries.
This will be his first such visit to India. According to the EU, CBAM is carbon tax imposed on goods imported. It is being said that this will encourage clean industrial products of non -EU countries. The CBAM is currently under infection and it will be fully implemented from January 1, 2026.
In the European Union's Forest Harvesting (EUDR), companies have to assure the trade blocks that the products they are exporting have not been prepared on the land where forests have been harvested after December 31, 2020.
The product of companies has been prepared on the land on which forests have not been harvested. It will be applicable on big and medium companies from December 30, 2025 and on micro and small enterprises from 30 June 2026. Many countries including India and China have condemned the CBAM. He said that this is a business obstruction in the guise of reducing carbon emissions.
India has been highlighting its concerns on these issues for more than a year. India has emphasized that 'transition period' is needed before implementing these regulations. India feels that its benefits will be limited and this regulation will actually become a non -trading obstacle during an attempt to sign the trade agreement of both sides.
Ajay Srivastava, founder of Delhi's think tank GTRI, said that after the implementation of CBAM and FTA, EU products will enter India's fee -free entry into India but India's steel and aluminum will have to face high carbon fees due to CBAM in the event of EU exporting EU.
Srivastava said, 'CBAM charges the methods of production. This is the disregard of the rules of the World Trade Organization. India should raise this issue in FTA and India should essentially emphasize protective language.
Actually, it is a difficult task for EU officials to solve India's concerns. The reason for this is that CBAM has no discount provision for any country including FTA partners. However, EU officials said that the CBAM is a 'proper measure'.
First Published – February 26, 2025 | 11:06 PM IST
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