India Criticizes EU's 'Trade Barrier' Carbon Tax

• India's finance minister, Nirmala Sitharaman, criticizes the EU's planned carbon tax on imports, calling it a 'trade barrier'.
• The EU Carbon Border Adjustment Mechanism (CBAM) is set to levy tariffs from 2026, which Sitharaman argues will hinder developing countries' transition from fossil fuels.
• The CBAM aims to penalize carbon emissions from goods imported to the EU, causing concern among India's heavy industries.
• A report estimates the CBAM could result in an additional 25% tax on carbon-intensive goods exported from India to the EU.
• Sitharaman also criticizes the EU's anti-deforestation law, stating it could disrupt supply chains and increase transition costs.

Source: Financial Times