INDIA will ask the European Union for concessions that will help align its planned national carbon market with the bloc's emissions trading system, reports Bloomberg.
New Delhi plans to raise the potential impacts of the EU Carbon Border Adjustment Mechanism, or CBAM, on domestic industries, according to people familiar with the matter.
Talks will begin in earnest at the seventh round of negotiations on a proposed free trade agreement from February 19-23, according to the people, who asked not to be named as the discussions are private. india wants to try and shield its companies from the full impact of the levy, they said.
The EU tax is aimed at preserving the integrity of its emission trading system by preventing European firms from importing goods with a high carbon footprint without incurring the related cost - a practice known as carbon leakage.
Exporters such as India argue that it will make their products more expensive and dent their competitiveness.
As much as 40 per cent of four million tonnes of steel India exports annually to Europe would be exposed to CBAM, according to a report by rating agency ICRA Ltd. India has already raised its opposition to the EU's carbon levy at the World Trade Organization.
Following the European Union's lead, nations including the UK and Australia have also started consultations on carbon border taxes to mitigate carbon leakage.
SeaNews Turkey
New Delhi plans to raise the potential impacts of the EU Carbon Border Adjustment Mechanism, or CBAM, on domestic industries, according to people familiar with the matter.
Talks will begin in earnest at the seventh round of negotiations on a proposed free trade agreement from February 19-23, according to the people, who asked not to be named as the discussions are private. india wants to try and shield its companies from the full impact of the levy, they said.
The EU tax is aimed at preserving the integrity of its emission trading system by preventing European firms from importing goods with a high carbon footprint without incurring the related cost - a practice known as carbon leakage.
Exporters such as India argue that it will make their products more expensive and dent their competitiveness.
As much as 40 per cent of four million tonnes of steel India exports annually to Europe would be exposed to CBAM, according to a report by rating agency ICRA Ltd. India has already raised its opposition to the EU's carbon levy at the World Trade Organization.
Following the European Union's lead, nations including the UK and Australia have also started consultations on carbon border taxes to mitigate carbon leakage.
SeaNews Turkey
