CBAM concessions if given by EU to others will also apply to India: FTA

New Delhi: The EU has not granted India any concessions on its Carbon Border Adjustment Mechanism (CBAM) under the proposed free trade agreement, but has agreed that any relaxations extended to other countries in future will automatically apply to Indian exporters, a government official said on Tuesday.

CBAM, which came into effect on January 1, imposes a carbon tax on imports such as steel, aluminium, fertiliser and cement based on emissions during production. It has been a key point of contention in India-EU trade talks.

The FTA includes provisions for rebalancing rights if EU measures under CBAM undermine benefits to Indian firms or lack adequate justification. A non-violation clause allows India to seek consultations and corrective action if future EU measures nullify agreed concessions.

The pact also provides for enhanced technical cooperation, including recognition of carbon prices, accreditation of Indian carbon verifiers, and financial and technical assistance to help Indian industry reduce emissions and comply with evolving carbon

requirements.