EU Director-General Visits India To Discuss Impact Of Carbon Border Adjustment Mechanism

ENA MSME 2024-07-08 15:24:23 New Delhi, Jul 8 (KNN) European Commission Director-General Gerassimos Thomas recently concluded a two-day visit to New Delhi, where he engaged in discussions with Indian government officials and business leaders regarding the European Union's proposed Carbon Border Adjustment Mechanism (CBAM). The CBAM, a planned tax on carbon emissions associated with imported goods, aims to create parity between EU-produced goods and those imported from countries such as India and China. This initiative has sparked debate in international forums, including UN climate conferences, with developing nations expressing concerns about potential economic impacts. During his July 1-2 visit, Thomas sought to explain CBAM's objectives and timeline, while also exploring its potential effects on Indian industries. He emphasised that the mechanism is designed to treat imported goods equally to those produced within the EU, without discrimination. Europe is a net importer of CBAM goods and wants to make sure that we continue importing goods with the lowest possible carbon intensity to contribute to decarbonisation at a global level, Thomas stated. He added that the measure would be implemented gradually to provide maximum predictability for investors and businesses. The visit also provided an opportunity to address concerns raised by Indian businesses, particularly the potential impact on micro, small, and medium-sized enterprises (MSMEs). Thomas noted that CBAM typically affects larger enterprises. Secretary General of India's leading MSME body Federation of Indian Micro and Small & Medium Enterprises (FISME) appreciated the initiative. The interaction cleared may doubts and also gave is opportunity to raise our concerns , says Anil Bhardwaj, SG, FISME. Beyond CBAM discussions, the visit encompassed talks on carbon trading markets, pricing mechanisms, and EU-India cooperation in energy efficiency, renewables, and clean technology. Additionally, taxation matters were addressed, including the 'Two-Pillar Solution' for taxing the digital economy. The European Commission announced that technical meetings with India's Ministry of Power, including the Bureau of Energy Efficiency, will continue. An assessment report on the CBAM transition period is expected to be submitted to the EU Council and European Parliament by the end of next year, allowing for further input from Indian industry and authorities. The visit also touched upon customs cooperation, with both sides agreeing to strengthen bilateral ties, particularly in addressing challenges related to cross-border e-commerce and designer drug precursors. As EU-India relations continue to grow, both parties expressed interest in deepening their partnership to benefit business. Ongoing negotiations for an EU-India Free Trade Agreement are expected to further enhance this cooperation. (KNN Bureau) 38509 https://knnindia.co.in/news/newsdetails/msme/eu-director-general-visits-india-to-discuss-impact-of-carbon-border-adjustment-mechanism 2024-07-08 15:24:23 knnindia.co.in EU Director-General Visits India To Discuss Impact Of Carbon Border Adjustment Mechanism