Page 4 - Carbon Tax

'Advance preparation by exporters, Centre must comply with EU's carbon tax'

Government and exporters have to take urgent steps like devising mechanisms for monitoring emissions data, and providing incentives for the adoption of greener technologies to deal with the European Union's carbon tax as it would impact exports of sectors like metals, a report said. Suggesting a nine-step action plan, the report by Global Trade Research Initiative (GTRI) said that Indian firms have less than 40 days to prepare for the CBAM (carbon border adjustment mechanism) transition. The CBAM or carbon tax (a kind of import duty) will come into effect from January 1, 2026, but from October 1 this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU. "The CBAM tax will start from January 2026, but there are penalties on not reporting, negligent reporting or mis-reporting of data from October 1, 2023, onwards," GTRI co-founder Ajay .

Unfair taxation in the name of climate action

EU's Carbon Border tax is not just discriminatory but founded on a flawed and faulty concept aimed to shift the burden of the carbon transition on to developing countries

Global trade costs could rise by $800 bn, carbon tax on shipping lined up

The IMO has proposed that 5% of all fuel used by ships be clean fuel by 2030

Export of steel, iron ore, cement likely to be hit by EU carbon tax: FinMin

India's merchandise trade deficit rose faster-than-expected in May to $22.12 billion, up from $15.24 billion in April, due to reduced demand for Indian exports from developed countries

Navigating the carbon-tax era in trade

The EU's carbon tax is set to shake up world trade, but through careful preparation, India can turn this to its advantage

India's carbon credit trading scheme spins a maze of regulatory complexity

A complex and unwieldy regulatory and monitoring process could raise the costs for Indian companies

The net-zero approach of major exchanges to trade in carbon credits

A carbon credit can be issued by any project or entity that saves on emissions

Two official teams from India, EU to discuss carbon tax issues: Official

India and the European Union have constituted two teams to discuss issues pertaining to the EU's carbon tax, which will kick in from October this year, a government official said. The European Union (EU) is introducing the Carbon Border Adjustment Mechanism (CBAM) from October 1 this year. It would have an impact on seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products. India raised these issues in the Trade and Technology Council (TTC) meeting between the two regions in Brussels in May. In that meeting, the official said, India presented the problems which would be faced by domestic MSMEs due to this tax and also matters related to modalities to comply with that. "So now they have agreed that there will be a channel opened for discussions. So there will be a team from their side and our side discussing this. The two teams would discuss about the implications of the notification of the EU," the official, who did not wish to be named

Govt fears European Union's draft due diligence law may hit small biz

European Union's law is still at the initial draft stage

India seeks carve out for MSMEs from European Union's carbon tax

The CBAM's transition-phase will kick in from October, followed by levying of carbon tax from January 2026

India hoping to negotiate with EU on carbon tax instead of WTO complaint

India filed a discussion paper with WTO about how environmental regulations impact trade, but with respect to CBAM specifically, it hopes direct negotiations with the EU will yield speedy resolution

EU's proposed carbon tax won't affect trade relation with India: Timmermans

European Union's climate policy chief Frans Timmermans on Friday said the bloc's proposed carbon tax will not have any negative effect on its trade relationship with India and that it would do nothing that is in violation of World Trade Organisation rules. The EU plans to implement a carbon import tax of 25 to 30 per cent on high carbon goods such as steel, cement, aluminum, iron, fertilisers, electricity and hydrogen. This has led to concerns about the impact on developing nations heavily reliant on carbon-intensive industries. The Carbon Border Adjustment Mechanism (CABM), expected to be introduced in its transitional phase from October, is part of the EU's larger climate strategy which focuses on incentivising member countries to reduce their carbon emissions and adopt greener practices. "If India fulfills all its ambitions in terms of greening the economy and reducing the carbon footprint and creating comparable footprints to the EU, there is no worry that CBAM will have a ...

Govt assessing monetary impact of EU's carbon tariff set to hit in Oct

Sarangi also said that the government hopes to make substantial progress in the India-UK free trade agreement (FTA) in the 10th round of negotiations from 5-9 June in the national capital

Carbon tariff may hurt European nations more than India: Officials

Govt assessing possible impact of CBAM on India vis a vis other nations

Power ministry to develop carbon credit trading scheme for decarbonisation

Union ministries of power and environment, forests & climate change will develop a carbon credit trading scheme for decarbonisation. The government plans to develop the Indian Carbon Market (ICM) where a national framework will be established with an objective to decarbonise the Indian economy by pricing the Green House Gas (GHG) emission through trading of the carbon credit certificates, a power ministry statement said. The Bureau of Energy Efficiency under the Ministry of Power along with Ministry of Environment, Forest & Climate Change are developing the Carbon Credit Trading Scheme. A one-day 'Stakeholder Consultation on Accredited Carbon Verifiers under ICM' was organised in the national capital on Thursday. Currently, India has an energy savings-based market mechanism and the new avatar scheme will enhance the energy transition efforts with an increased scope that will cover the potential energy sectors. For these sectors, the GHG emissions intensity benchmark and ...

Centre asks industry to be ready for EU carbon tax, vows smooth transition

The carbon tax aims to impose a tax on goods imported into the EU from regions where production-stage carbon emissions are higher than those allowed by the mechanism's rules

India pressing EU for recognition of carbon certificates for MSMEs

India is pressing the European Union for a mutual recognition agreement for its carbon certificates and exempt MSMEs in certain sectors to insulate the domestic industry from the burden of the EU's carbon tax, which would kick in from October this year, a government official said. The EU is introducing the Carbon Border Adjustment Mechanism (CBAM) from October 1 this year. CBAM would translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026. From October, domestic companies from seven carbon-intensive sectors -- including steel, cement, fertiliser, aluminium and hydrocarbon products -- would have to seek compliance certificates from the EU authorities to comply with the CBAM norms. Under the mutual recognition agreement, India has asked the EU to give recognition to its Carbon Credit Trading Scheme (CCTS), which is under preparation by the power ministry. Acceptability of CCTS by the EU would help Indian companies to reduce additional burden in the

Steel industry raises concerns over EU's carbon border tax with govt

The steel ministry on Wednesday held a meeting with the industry players over the European Union's move to impose carbon tax, sources said. The meeting comes amid the carbon border adjustment mechanism (CBAM) being implemented by the European Union, which would have an adverse impact on India's exports of metals such as iron, steel and aluminium products to the EU, they said. The EU is introducing CBAM from October 1 this year. The new mechanism will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026. On the request of the representatives of various steel companies and industry bodies the steel ministry held a meeting on Wednesday evening. "In the hybrid meeting chaired by steel secretary Nagendra Nath Sinha, the industry raised the issue of CBAM, saying it violates several articles of the WTO," sources said. They also noted that post imposition of the tax regime, India will become vulnerable to dumping of steel items by various countries, w

Officials, industry leaders may meet on May 4 to discuss EU's carbon tax

From January 1, 2026, the EU will start collecting carbon tax on each consignment of steel, aluminium, cement, fertilizer, hydrogen and electricity

Exporting into a world with carbon tax

Policymakers should help embed India in the growing presence of this tax worldwide