EU's Carbon Tax Could Cost India 0.05% Of GDP: Report
NDTV
The EU argues that this mechanism creates a level playing field for domestically manufactured goods, which must adhere to stricter environmental standards, and helps reduce emissions from imports.
The European Union's Carbon Border Adjustment Mechanism (CBAM) will impose an additional 25 per cent tax on energy-intensive goods exported from India to the EU, a new report said on Wednesday.
This tax burden would represent 0.05 per cent of India's GDP, according to the report titled "The Global South's Response to a Changing Trade Regime in the Era of Climate Change" by the independent think tank Centre for Science and Environment (CSE).
These findings are based on data from the past three years (2021-22, 2022-23, and 2023-24). CBAM is the EU's proposed tax on energy-intensive products, such as iron, steel, cement, fertilizers, and aluminium, imported from countries like India and China. The tax is based on the carbon emissions generated during the production of these goods.
