The EU's Carbon Border Adjustment Mechanism enforces carbon taxes on specific imports. This challenges India’s carbon-intensive sectors like steel and aluminium. India must leverage FTAs, develop domestic carbon pricing, and transition to green technologies to ensure global competitiveness.
Click to View MoreThe EU’s CBAM from January 2026 will tax carbon-intensive Indian exports, citing carbon leakage. India sees it as protectionist and against CBDR, hurting MSMEs. India plans a WTO challenge while building a domestic carbon market to retain revenue and drive its green transition.
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