India-EU Free Trade Agreement Maintains EU Carbon Tax with Technical Talks Planned

The India-EU Free Trade Agreement (FTA) maintains the European Union's Carbon Border Adjustment Mechanism (CBAM) without exemptions for any country, including India. Jochen Flasbarth, German Environment Ministry State Secretary, stated that CBAM is a protective measure linked to the EU's domestic carbon pricing and not targeted at specific nations. Both sides have agreed to technical discussions to address concerns, especially regarding carbon-intensive Indian exports like steel. The FTA also includes cooperation on carbon pricing and critical minerals.