Government to Protect Industry from EU’s CBAM Regulations

The government has said that it will take all necessary steps to protect Indian industry from the adverse impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM).

The CBAM is a carbon pricing mechanism that will be imposed on certain imported goods from countries that do not have comparable carbon pricing systems.

The government has said that it will provide financial assistance to Indian industries that are affected by the CBAM. It will also work with the EU to ensure that the mechanism is fair and does not unduly harm Indian exports.

The CBAM is expected to come into effect in October 2023. It will initially cover imports of iron and steel, aluminium, cement, and electricity. The scope of the mechanism is expected to be expanded in the future.

The government’s decision to protect Indian industry from the CBAM is a welcome move.

The mechanism could have had a significant impact on Indian exports, especially in sectors such as steel and cement.

The government’s financial assistance and its engagement with the EU will help to mitigate the impact of the CBAM and ensure that Indian industry remains competitive.

Here are some of the specific measures that the government has said it will take to protect Indian industry from the CBAM:

• Provide financial assistance to Indian industries that are affected by the CBAM. This could be done through direct subsidies, tax breaks, or other measures.
• Work with the EU to ensure that the mechanism is fair and does not unduly harm Indian exports. This could involve negotiating exemptions for certain products or sectors, or seeking to delay the implementation of the mechanism.
• Promote the adoption of cleaner technologies by Indian industries. This could help to reduce the carbon intensity of Indian exports and make them less vulnerable to the CBAM.

The government’s decision to protect Indian industry from the CBAM is a positive step.

It shows that the government is committed to supporting Indian businesses and ensuring that they remain competitive in the global market.