Governmen`s initiative to increase use of green energy, policy interventions to help Indian industry deal with EU`s carbon tax: Piyush Goyal
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Commerce Minister Piyush Goyal has said the government's initiative to increase the use of green energy and some policy interventions will help the Indian industry tide over the impact of the European Union’s (EU's) decision to impose a carbon tax on sectors like steel and aluminium.
Goyal said that India is in dialogue with the European Union and with other countries to see how these new initiatives like CBAM (carbon border adjustment mechanism) will impact Indian industry and manufacturers. However, he assured the industry that the government will protect its interest.
The EU is introducing the CBAM from October 1 this year. CBAM will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026. The CBAM or carbon tax (a kind of import duty) will come into effect from January 1, 2026, but from October 1 this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU. In 2022, India's 27 per cent exports of iron, steel, and aluminium products of value $8.2 billion went to the EU.
