Senior officials from various ministries, including finance, trade and steel ministers, as well as industry leaders are expected to meet on May 4 over the European Union’s move to introduce a carbon tax, sources said. The meeting comes amid the European Union’s implemented carbon border adjustment mechanism (CBAM), which would adversely affect India’s exports of metals such as iron, steel and aluminum products to the EU, they said.
The meeting will be chaired by Trade Minister Sunil Barthwal.
The EU will introduce CBAM from October 1st this year. The new mechanism will lead to a tax of 20 to 35 percent on selected imports into the EU from January 1, 2026.
India’s iron, steel and aluminum exports to European Union countries under the mechanism will be subject to additional scrutiny from October 1, according to a report by economic think tank GTRI.
From January 1, 2026, the EU will start levying a carbon tax on every shipment of steel, aluminium, cement, fertilisers, hydrogen and electricity.
In 2022, 27 percent of India’s $8.2 billion worth of iron, steel and aluminum products exports went to the EU.
GTRI co-founder Ajay Srivastva has previously suggested that the government should consider measures to deal with the situation.
The meeting is expected to be widely attended by senior officials from ministries, including MSME, and private sector representatives from the steel and alloys sector, one of the sources said.