Archive · 25 Sep 2026
India Retains Third-Party Rights in Russia-EU CBAM WTO Dispute
Russia has challenged a European Union climate-related trade rule at the World Trade Organization.
The rule is called the Carbon Border Adjustment Mechanism, or CBAM.
It requires importers of some carbon-intensive goods to account for emissions linked to those products.
India has reserved the right to join the case as a third party.
This means India can share its views without leading the dispute.
Indian exporters, especially steel and aluminium producers, are concerned about extra costs and paperwork.
Russia says CBAM creates unfair trade barriers and that some free emissions allowances help European companies.
The European Union says CBAM and its emissions-trading rules follow World Trade Organization rules.
A WTO panel will study both sides’ arguments.
India is among 18 WTO members reserving third-party rights in Russia’s dispute against the European Union’s CBAM package.
The WTO Dispute Settlement Body agreed to establish a panel after Russia submitted its second request.
Russia alleges that CBAM creates trade barriers and that free emissions allowances act as export subsidies.
India’s third-party status allows it to submit views and participate without becoming a principal party.
Indian steel and aluminium exporters face additional compliance requirements and carbon-related costs under CBAM.
- Who
- India, Russia, the European Union, and 18 WTO members that reserved third-party rights are involved.
- What
- The WTO will examine Russia’s challenge to the European Union’s Carbon Border Adjustment Mechanism and related emissions-allowance arrangements.
- When
- The WTO Dispute Settlement Body approved the panel after Russia’s second request; the article was published on September 25, 2026.
- Where
- The dispute is being considered by the World Trade Organization’s Dispute Settlement Body.
- Why
- India wants to present its views on measures that affect its carbon-intensive exporters, while Russia seeks review of alleged WTO violations by the European Union.
Russia and Exporters’ Concerns
European Union’s Position
Trade barriers
Russia and Exporters’ Concerns
Russia argues that CBAM imposes unjustified trade barriers on covered goods imported into the European Union. Indian exporters have also raised concerns about compliance burdens and additional costs.
European Union’s Position
The European Union maintains that CBAM complies with World Trade Organization rules.
Emissions allowances
Russia and Exporters’ Concerns
Russia alleges that free emissions allowances given to selected European companies function as export subsidies and strengthen their competitiveness.
European Union’s Position
The European Union maintains that its CBAM and emissions-trading arrangements comply with World Trade Organization obligations.
Climate and trade rules
Russia and Exporters’ Concerns
India has said that international trade and environmental law principles should be followed in designing CBAM, including common but differentiated responsibilities and respective capabilities.
European Union’s Position
The European Union is defending its carbon-border and emissions-trading measures under the World Trade Organization framework.
- Dispute forum
- World Trade Organization Dispute Settlement Body
- Main complainant
- Russia
- Respondent
- European Union
- Challenged measure
- European Union Carbon Border Adjustment Mechanism package
- India’s status
- Third party, not a principal party
- Affected Indian exports
- Carbon-intensive products including steel and aluminium
- Additional issue
- Allocation of emissions allowances under the European Union Emissions Trading System
- Third-party participants
- 18 WTO members, including India, the United Kingdom, the United States, China and Brazil
