Page 2 - Carbon Tax

CBAM unilateral and arbitrary, will hurt Indian industry: FM Sitharaman

According to the European Union, CBAM is a tool to put a fair price on the carbon emitted during production of carbon-intensive goods entering the trade bloc

Goyal suggests talks on carbon tax issue with top steel industry leaders

Commerce and Industry Minister Piyush Goyal on Thursday suggested discussions on carbon border adjustment tax with top steel industry leaders to promote sustainable manufacturing in the sector. He also asked the industry to target 500 million tonnes steel production by 2047. At present, the industry is eyeing 300 million tonnes by 2030. The minister suggested the industry find newer and better ways on lowering carbon emission and promoting high productivity and quality steel in the country. "Let's try and utilise AI (artificial intelligence) to optimise our production, reduce waste, and improve efficiency across the value chain and work towards a circle economy in a bigger way," he said, while addressing a steel conclave virtually. On carbon tax, he suggested that 4-5 top leaders of the steel industry can sit with him on this important subject for deliberations. The minister added that the government was not able to extend the benefits of the Remission of Duties and Taxes on Expor

EU's suggestion on carbon tax not to help Indian firms much: GTRI

The EU's suggestion that India could avoid its carbon tax by imposing a similar levy locally will not help the domestic players much, as they would still be liable for the duty for their exports to the European Union, think tank GTRI said on Wednesday. The main issue is that carbon prices are usually based on a country's economic situation, so simply adding a local tax would not reduce the overall tax burden significantly, the Global Trade Research Initiative (GTRI) said. While the EU (European Union) can afford high carbon prices, it may not be sustainable for a developing country like India, it said. Further explaining, it said at present, the global average carbon price is around USD 6 per tonne of CO2 and if India were to establish an Emissions Trading System (ETS) or set a carbon price, it is expected to be less than USD 10 per tonne of CO2. Even with such a system, Indian firms would still need to pay the EU the difference amounting to USD 51.3 per tonne of CO2 under the Carb

Will consider EU suggestion; come up with whatever good for industry: Goyal

The EU has suggested that India can devise its own mechanism instead of paying the carbon tax to the European Union, Commerce and Industry Minister Piyush Goyal said on Tuesday. Goyal said the ministry would consider the EU's suggestion and come up with whatever is good for the Indian industry and for the people. He added India is in dialogue with the European Union (EU) on the tax or Carbon Border Adjustment Mechanism (CBAM). The minister said he feels the CBAM will hurt the EU "very" badly, as infrastructure, cost of living, industrial and consumer products will become expensive. The EU's economy will also face further distress that is "my reading of CBAM", Goyal said. "They (EU) are very keen to pursue that and they have offered that India could instead of paying CBAM tax to the EU, devise its own mechanism. We will consider their suggestion and come up with whatever is good for the Indian industry and for the people of India," he told reporters here. As per reports, an EU ...

Denmark to be 1st to impose tax on livestock carbon emissions: Danish govt

A tax was first proposed in February by government-commissioned experts to help Denmark reach a legally binding 2030 target of cutting greenhouse gas emissions by 70 per cent from 1990 levels

EU carbon tax may have limited impact on domestic aluminium producers: ICRA

Rating agency Icra on Tuesday said that the proposed European Union's carbon tax may have a limited impact on the domestic primary aluminium producers. The CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) will come into effect from January 1, 2026. "The Carbon Border Adjustment Mechanism (CBAM) ruling on exports to the European Union (EU) will have a limited impact on the domestic primary aluminium producers. This is because the present notification covers the financial impact w.e.f January 1, 2026, on direct process-related emission only, while excluding the indirect emission, which contributes 80 per cent to the total emissions in the primary aluminium production process," Icra said in a statement. The indirect emission primarily results from the production of electricity that is subsequently consumed in the smelting process. India exported around 0.7 metric million tonnes (24 per cent of exports) of primary aluminium to European countries in FY23.

Firms in a tough global environment

Strategy thinkers have to redesign firms

TMS Ep640: SC on Patanjali, Blinkit, Vodafone Idea stock, CBAM

Where does the buck stop after SC rap on Patanjali? Can Blinkit challenge Amazon & Flipkart? Why did Vodafone Idea's fundraise plan fail? What is the Carbon Border Adjustment Mechanism? Answers here

EU carbon border tax will do little to cut emissions, says ADB report

It was designed to level the playing field and make foreign suppliers pay the same carbon price as domestic ones, even if they are not subject to an ETS or carbon tax at home

India may face 10.5% VAT on production under CBAM regime: ADB study

Sectors like ferrous metals, electricity, petrochemicals expected to be worst impacted

Talks on CCUS policy in advanced stages: Dastur Energy CEO Atanu Mukherjee

IOCL working on capturing carbon dioxide, ONGC identifying storage locations

India plans to protest EU's proposed carbon tax at WTO meeting: Report

New Delhi has also opposed EU regulations banning the import of products based on deforestation in the country of origin, likely to hit billions of dollars worth of exports from India

India's climate goals: Navigating a complex dilemma

Its experience underscores that unanimous advocacy for carbon taxation can be misguided, as it ignores country-specific realities

Best of BS Opinion: CBAM as an opportunity, Social media conundrum & more

Here is the best of Business Standard's opinion pieces for today

CBAM as an opportunity

Indian exporters could proactively adjust to it

India Inc concerned about CBAM's impact on supply chain: PwC study

India has set an ambitious goal of generating around 50 per cent of its installed electric power capacity from non-fossil fuel-based energy resources by 2030

India seeks bargains against UK's carbon border tax as part of FTA

Both countries hope to finalise the deal by February, before the Lok Sabha election in India

UK plans to implement carbon tax on imported goods like steel from 2027

The British government announced plans Monday to charge a carbon levy on imported raw materials such as aluminum, iron, steel and cement from 2027, in an attempt to prevent firms being undercut by overseas producers. However, the plan has come under criticism from the body representing British steel as being too sluggish, as it will come into effect one year after similar proposals from the European Union (EU) are implemented. Announcing its plan, Britain's Treasury said the proposed new tax will level the playing field, helping greener domestic producers compete against higher carbon, but cheaper, foreign rivals. For years, fears have been expressed that efforts to cut greenhouse gases in the UK are not being matched overseas, meaning that emissions are just being displaced to other countries without ambitious net-zero targets, leading to little global benefit. This levy will make sure carbon-intensive products from overseas like steel and ceramics face a comparable carbon price

EU carbon tax to hurt global trade, not to stop carbon leakage: GTRI

The decision of the European Union (EU) to impose a carbon tax on certain sectors like metals from 2026 will only hurt global trade and not help in containing carbon emissions, think tank GTRI said on Sunday. The Global Trade Research Initiative (GTRI) said that European Commissioner Wopke Hoekstra remarks that the sole aim of CBAM (Carbon Border Adjustment Mechanism) is to prevent carbon leakage which has significant flaws. It added that fossil fuels contribute to 90 per cent of Greenhouse and 75 per cent of carbon emissions and if decarbonization is the goal, the EU should heavily tax fossil-fuel imports. Carbon leakage is the phenomenon of companies moving production to countries with weaker environmental regulations to avoid paying carbon prices in the EU. This objective could have been achieved by merely taxing imports from the EU firms, which have shifted production to other countries. However, the EU chose to tax all world imports through CBAM, GTRI Co-Founder Ajay Srivastava

Preventing carbon leakage CBAM's aim: Europe as India threatens retaliation

The European Commission on Friday said the sole aim of CBAM -- a tax the European Union plans to impose on energy-intensive goods from countries like India and China -- is to prevent carbon leakage, a situation where companies decide to shift out their production from a country with stringent policies. European Commissioner Wopke Hoekstra made this statement at a press conference at the UN climate talks here even as India's Commerce and Industry Minister Piyush Goyal threatened retaliatory action at an event in New Delhi. Hoekstra said, "CBAM's sole aim is to prevent carbon leakage." Peter Liese, a German politician and a member of the European Parliament, said the bloc aims to reduce emissions by 55 percent by 2030 and that achieving such a significant reduction without CBAM would not be feasible. Stressing that CBAM is crucial for funding the bloc's climate goals, he cautioned that any attempt to dismantle it would have far-reaching consequences beyond its scope. "Any agenda to .