India's Green Trade Pact with EU: Navigating Carbon Concessions

India and the EU's trade pact addresses the contentious carbon tax issue under the Carbon Border Adjustment Mechanism (CBAM). While the EU hasn't provided India specific concessions, any future relaxations granted to other countries will extend to Indian exporters. The agreement aims to bolster technical cooperation on carbon pricing and emissions reduction.

In a significant development, India and the European Union (EU) have negotiated terms concerning the contentious Carbon Border Adjustment Mechanism (CBAM) within their trade pact. At the heart of the discussion is the carbon tax, currently applied to steel and aluminium, which poses a hurdle for Indian exporters.

Indian officials confirmed that while no immediate concessions have been secured, the EU has assured that any future relaxations to other nations will automatically extend to India. This agreement also includes provisions for rebalancing rights should the EU's measures disrupt the expected benefits for Indian firms.

Additionally, both parties have committed to enhancing technical cooperation, with plans to facilitate the recognition of carbon prices and support efforts to meet growing emission standards. The pact also fosters the establishment of a technical group to accredit Indian verifiers, marking a step towards more sustainable industrial collaboration.

(With inputs from agencies.)