Valdis Dombrovskis, the European Commissioner for Trade, has termed the proposed Carbon Border Adjustment Mechanism (CBAM) as "non-discriminatory" between domestic and imported goods, even as the European Union (EU) aims for climate neutrality by 2050.
Stating that the work towards carbon neutrality involves setting a price on carbon in economic activities and addressing carbon leakages, he said that the plan is to remove exemptions for both domestic polluters and importers.
Previously, many energy-intensive sectors like cement, steel, aluminium, and electrolysers, were exempted from any carbon taxes. However, the anticipated implementation of the CBAM is scheduled for 2026.
During a conversation with Commerce and Industry Minister Piyush Goyal at the
B20 India Summit 2023 in New Delhi, Dombrovskis acknowledged that while it's not easy to manage disagreements within the 27-nation bloc, there's political will to work as a European family, aiming to be a superpower with a unified market. Dombrovskis pointed out a growing consensus within the EU to strengthen ties with India, promoting supply chain diversification in the long term.
Expressing optimism over the upcoming WTO ministerial in Abu Dhabi, US Trade Representative Katherine Tai said that despite trade frictions, India's G20 Presidency theme of "One planet, one family, one future" should be kept in mind to demonstrate that like any family, countries can differ on several issues.
Tai stressed the importance of political alignment to resolve pending issues and engage with trading partners and batted for collaboration and cooperation on international fora to foster economic development that is inclusive and resilient.
Discussing the India-US trade relationship at a peak, Tai elaborated on the Indo-Pacific Economic Framework (IPEF) as a new engagement platform reflecting several global economic shifts and uncertainties arising from climate crises and digital transformations.
