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Informist, Wednesday, Feb. 18, 2026

 

By Pratiksha

 

NEW DELHI – The technical group on Carbon Border Adjustment Mechanism, formed under the India-European Union free trade agreement, will soon hold discussions on facilitating Indian industries' smooth access to the EU market, Steel Secretary Sandeep Poundrik said Wednesday.

 

"With EU, there are two things, there are tariffs at large and the CBAM (Carbon Border Adjustment Mechanism). For those, we will be holding technical discussions with the EU soon," Poundrik told Informist on the sidelines of the AI Impact Summit, held in New Delhi. "It will be part of the FTA. We'll have to see how the discussions go."

 

Both the sides have agreed to set up a technical group to facilitate Indian industries' smooth access to the EU market despite the carbon regulation, Commerce Secretary Rajesh Agrawal had said on Jan. 27. "We will be working together to see that verifiers of CBAM in India are also accredited by the EU agencies so the industry can access them. We will also be working together to understand the process by which carbon measurement will be done in both the economies," Agrawal said.

 

On Jan. 27, India and the EU jointly announced the signing of a free trade agreement in New Delhi, with Prime Minister Narendra Modi hailing it as "the "biggest trade deal in India's history" and European Commission President Ursula von der Leyen calling it the "mother of all deals". The two sides had been negotiating the deal since 2022.

 

While the FTA slashed tariffs on several sectors, it left the bloc's carbon border tariff, called Carbon Border Adjustment Mechanism, intact. Brussels fully implemented its Carbon Border Adjustment Mechanism on Jan. 1, which entails duty collection based on reported carbon content in the shipment entering the EU. The carbon tax currently applies to iron and steel, aluminium, cement, fertilisers, hydrogen, and electricity entering the EU.  End

Edited by Akul Nishant Akhoury

 

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