Some sectors of Indian industry, such as steel, have urged the government to take up the issue with the European Union, expressing concern over the burdensome task of providing the information required to comply with the upcoming carbon tax regime in the European Union. Local exporters took the issue seriously in a meeting called by the commerce ministry on Wednesday, an official said. The industry said that in order to comply with the terms of the carbon tax system, they would have to provide the EU with a large amount of production information, a cumbersome task in itself.
The European Union is going to base the amount of carbon emissions on any product when allowing imports. For this, carbon limit adjustment system is going to be implemented from October 1. However, the levy of carbon tax will start from January 1, 2026. According to the official, the industry has also mentioned obtaining commercially sensitive information. “We discussed all these issues,” he said. We are trying to understand their problems.
The industry believes that this provision may adversely affect Indian products exported to the European Union. Exports are likely to be more affected due to carbon emissions, particularly in iron, steel and aluminum products.
According to a report by the Global Trade Research Initiative (GTRI), an economic research institute, carbon-intensive sectors such as steel, cement, fertiliser, aluminum and hydrocarbons will be required to report their emissions levels to the EU from October 1, and face penalties for not doing so. will also be charged.
In view of these apprehensions, local exporters are demanding the government to take up the matter with the European Union.