Bridging Carbon Gaps: India-EU's Green Accord

India and the EU have reached a consensus on measures to handle carbon-intensive imports, including forming a technical working group and pledging financial and technical support. A memorandum of understanding will enhance Indian industries' carbon reduction efforts, marking a pivotal step in their trade agreement negotiations.

India and the European Union (EU) have forged a critical agreement aimed at addressing the EU's new carbon tariff regulation on carbon-intensive imports. Official sources revealed the plan includes funding, technical assistance, and a proposed memorandum of understanding to help reduce India's carbon footprint.

From January 1, the EU commenced its Carbon Border Adjustment Mechanism (CBAM), taxing carbon-heavy products like steel, cement, and aluminum. Both parties aim to finalize measures that include accrediting Indian verifiers to audit carbon footprints, offering India's firms key insights into tariff calculations and compliance.

The negotiations also brought mobility benefits for Indian students and professionals, paving the way for enhanced bilateral trade while significantly slashing tariffs. The comprehensive free trade agreement is anticipated to cover a substantial portion of global GDP, offering lucrative advantages to various industries on both sides.

(With inputs from agencies.)