EU's carbon tax proposal faces skepticism in India

The EU plans to enforce the CBAM, or carbon tax, starting January 1, 2026. However, beginning this October, companies in seven carbon-intensive sectors, such as steel, cement, fertilizer, aluminum, and hydrocarbon products, must report their carbon emissions data to the EU. GTRI warned that the fully implemented EU-CBAM would impose a 20-35% import tax on Indian firms. Additionally, the domestic industry would be compelled to disclose all plant and production details to the EU.