CAUSE
One question. One truth.
“Why is the Carbon Border Adjustment Mechanism being overlooked in the India-EU trade deal?”
CBAM's immediate operational reality and severe economic impact on Indian exporters created an urgent need to secure concrete protections in the trade deal, making CBAM a central focus rather than a sidelined issue - the agreement prioritizes CBAM mitigation through MFN clauses, technical cooperation, and financial assistance precisely because of its critical importance to India's €8 billion in affected exports.
Medium confidenceStructural
CURRENT STATE
CBAM remains a major unresolved issue in the India-EU FTA, with India facing new compliance costs and export declines in carbon-intensive sectors. The agreement provides no exceptions for CBAM, only assurances of equal treatment and technical support, leaving Indian exporters exposed to EU carbon taxes.
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