Archive · 23 Aug 2025
India to Seek Relief From EU Climate Trade Rules
The EU is changing its trade rules related to climate change, like putting a tax on carbon-intensive goods.
They're making these rules a little easier for the US to follow.
India is now asking the EU to make similar exceptions for them.
India is worried these rules could hurt its businesses.
The EU-US deal has clauses about carbon taxes, company responsibility, and deforestation rules, making things easier for US companies.
India's steel and aluminum exports to the EU have decreased, showing the impact of the rules.
India's leaders call the carbon tax unfair.
EU is offering concessions to US manufacturers on climate-related trade rules.
Indian negotiators plan to seek similar relief in upcoming talks with the EU.
The Carbon Border Adjustment Mechanism (CBAM) is a point of contention.
The EU-US trade deal includes provisions addressing US concerns on CBAM, CSDDD, and deforestation regulations.
Indian steel and aluminum exports to the EU have dropped.
- Who
- Indian negotiators and EU officials.
- What
- India seeks climate trade rule relief from the EU.
- When
- Negotiations are set for next month.
- Where
- Brussels.
- Why
- To address concerns about EU climate regulations impacting Indian exporters and to seek similar concessions to the US.
EU Stance
India's Stance
CBAM Purpose
EU Stance
EU's CBAM is for decarbonization and is not a trade measure.
India's Stance
India's view that the CBAM is unfair and violates CBDR principles.
Flexibility in Implementation
EU Stance
EU offers concessions to US manufacturers to address their concerns regarding CBAM, CSDDD, and deforestation regulations.
India's Stance
India's expectation for the same flexibility to not unduly affect trade.
- CBAM Scope
- Iron, steel, aluminum, cement, fertilizers, electricity, and hydrogen.
- India's EU Exports (FY24)
- $98 billion
- Steel and Aluminum Export Drop
- 24.4% (FY25)
- US Steel/Aluminum Tariffs
- 50%
- CBAM Implementation Date
- January 2026