2024-07-29 22:22:41
India has refused to accept an EU proposal to impose higher taxes on carbon-intensive industries, even though the bloc has said it is ready to offset them when those products enter its territory. This was reported by a high-ranking representative from Delhi, quoted by Reuters.
The latest proposal was made by an EU delegation led by Gerasimos Thomas, director-general for taxation and the customs union in the EU, who defended the proposed Carbon Border Adjustment Mechanism (CBAM) in a meeting with Indian officials.
“Their proposal is not practical. Their team came and met us (…) but the solution they proposed does not work for a developing economy like India,” said India’s Economic Affairs Minister Ajay Seth.
The EU last year approved a world-first plan to impose tariffs on carbon-intensive goods, including steel, aluminum and cement, in a bid to reach zero greenhouse emissions by 2050.
Negotiations between the EU and India are continuing at a “technical level”, according to an EU communiqué issued after the delegation’s visit earlier this month.
EU officials are trying to win the battle with countries such as China, South Africa and India, which have opposed the mechanism, BTA reported.
The EU delegation informed India that the original intention of imposing the carbon tax was not to collect revenue but to ensure the supply of greener goods to the EU market.
The delegation has also suggested that India introduce its own carbon tax to finance supply chain advances and carbon reductions while maintaining its share of the EU market.