India Rejects EU Proposal on Carbon Border Adjustment Mechanism

India has declined the European Union's proposal to impose higher taxes on its carbon-producing industries, citing impracticality for a developing economy. Negotiations continue as the EU aims to implement the world's first carbon border adjustment mechanism. India emphasizes adherence to the 2015 Paris Agreement's more flexible emission-cutting targets for developing nations.

India has rejected a European Union proposal to levy higher taxes on its carbon-producing industries, aiming to protect domestic market costs, according to top officials.

The 27-nation bloc's latest suggestion was defended by Gerassimos Thomas, the EU's director general for taxation and customs union, who met with Indian officials. However, Ajay Seth, India's economic affairs secretary, labeled the proposal as impractical for a developing economy like India.

Seth pointed out that greening India's steel industry would entail higher costs that the country cannot afford with current income levels. He advocated for adherence to the 2015 Paris Agreement, which offers more flexible emission targets for developing nations.