Union Commerce and Industry Minister Piyush Goyal has criticised the European Union’s Carbon Border Adjustment Mechanism (CBAM), warning that it could increase industrial costs, fuel inflation and weaken the competitiveness of European industries.

 

Addressing the Berlin Global Dialogue yesterday, Mr Goyal said additional costs on steel and other industrial materials, coupled with increasing regulatory restrictions, could adversely affect European businesses and consumers. He cautioned that higher costs of steel, aluminium and cement could raise expenditure on infrastructure projects, including ports, airports, highways and utilities. Mr Goyal also warned that regulatory barriers could trigger retaliatory measures from trading partners, further hurting businesses and undermining global competitiveness.

 

The Minister said India was working to strengthen its competitiveness and build fair, equitable and balanced trade partnerships with countries around the world. On India’s climate record, Mr Goyal said, the country accounts for only 3 to 3.5 percent of global carbon emissions, despite being home to around 17 percent of the world’s population.

 

The EU’s CBAM covers carbon-intensive imports, including steel, aluminium and cement, and requires importers to account for the emissions embedded in certain goods entering the European market. India has raised concerns that the mechanism could increase compliance costs for exporters and create additional trade barriers.