Union Commerce and Industry Minister Piyush Goyal has warned that the European Union’s carbon tax on steel and other industrial products could raise infrastructure costs, fuel inflation and weaken the bloc’s global competitiveness.
Addressing the Berlin Global Dialogue yesterday, Mr Goyal criticised the EU’s Carbon Border Adjustment Mechanism (CBAM), warning that higher costs of steel, aluminium and cement could increase infrastructure expenditure and affect European businesses and consumers. He also cautioned that growing regulatory restrictions could create trade barriers and trigger retaliatory measures from trading partners.
Mr Goyal also criticised developed nations for failing to fulfil their commitment to mobilise 100 billion dollars annually in climate finance for developing countries. He highlighted that India accounts for around 17 per cent of the global population but less than 3 per cent of global carbon emissions, while pursuing one of the world’s fastest-growing clean energy programmes. He called for climate policies that recognise the differing responsibilities of developed and developing countries and support India’s efforts to meet its development needs while expanding clean energy and greener steel production.
Earlier, at the India-Germany Business Roundtable in Berlin, Mr Goyal called for increasing bilateral trade from around 31.5 billion euros to 310 billion euros, stressing cooperation in manufacturing, investment and technology. He highlighted opportunities in precision engineering, digital technologies, infrastructure and skill development, and said the India-European Union Free Trade Agreement could create fresh business opportunities.
The Minister urged businesses to prepare for the agreement’s implementation by identifying potential customers, investors and partners. Mr Goyal is on an official visit to Germany until tomorrow and will travel to the Netherlands from tomorrow to Thursday to strengthen trade, investment and technological cooperation.
