EU's carbon tax to favor Indian exporters
The European Union is making its carbon tax (CBAM) a bit fairer for Indian exporters.
Now, if Indian companies have already paid for their carbon emissions at home, the EU will count that—so they don't get taxed twice.
This update, part of the new Strategic EU-India Agenda revealed on Wednesday, aims to ease costs for Indian firms working toward cleaner production.
CBAM will kick in from January 2026
From January 2026, the EU will start taxing imports like steel and cement with high carbon footprints.
By recognizing India's own carbon pricing, the EU will deduct that amount under CBAM, favoring Indian exporters who decarbonise their goods.
The broader agenda also pushes for better tech partnerships, smoother supply chains, and hopes to wrap up an India-EU Free Trade Agreement by the end of 2025.