https://sputniknews.in/20221216/eu-climate-action-tax-would-affect-indias-steel-exports-finance-minister-119414.html
EU Climate Action Tax to Affect India's Steel Exports: Finance Minister
EU Climate Action Tax to Affect India's Steel Exports: Finance Minister
Sputnik India
India is the world’s second-largest exporter of steel, having exported a third of its finished steel to foreign countries in the last financial year, according... 16.12.2022, Sputnik India
2022-12-16T15:51+0530
2022-12-16T15:51+0530
2022-12-16T17:01+0530
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Indian Finance Minister Nirmala Sitharaman has expressed concern over upcoming tariffs on Delhi’s steel exports imposed by other nations, flagging foreign governments' tendency to “fund their transition to [a] green economy by raising tariffs on imports from countries like India."Sitharaman said that a carbon tax on Indian exports by other countries “would affect” India directly.While describing climate change as a “common concern” for every country and industry, the minister underlined that adapting national policies in accordance with green standards was also a source of concern both for India and other developing nations.EU Carbon TaxThe remarks come just a few days after the European Union (EU) struck a deal to impose a carbon tax on imports of cement, steel, aluminum, fertilizers and electricity production. The EU’s Carbon Border Adjustment Mechanism, the world’s first carbon tax, will come into effect in 2026, but its phase-in will start with reporting obligations in October next year.Sitharaman called upon Indian industry to fully understand the new climate taxes and “reset” itself so that domestic exporters were ready for the upcoming “tariff walls”.“I want the industry to be fully seized of the increased costs they will face in the transition to cleaner energy,” Sitharaman stated.She said that the Indian government would extend full diplomatic support to domestic exports in order to meet the challenges presented by the new tariffs.
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EU Climate Action Tax to Affect India's Steel Exports: Finance Minister
15:51 16.12.2022 (Updated: 17:01 16.12.2022) India is the world’s second-largest exporter of steel, having exported a third of its finished steel to foreign countries in the last financial year, according to government data.
Indian Finance Minister Nirmala Sitharaman has expressed concern over upcoming tariffs on Delhi’s steel exports imposed by other nations, flagging foreign governments' tendency to “fund their transition to [a] green economy by raising tariffs on imports from countries like India."
Sitharaman said that a carbon tax on Indian exports by other countries “would affect” India directly.
“When you are going to export your steel, you would be facing tariff walls in the name of climate action tax,” Sitharaman stated during a keynote address at the 95th annual convention of the Federation of Indian Chambers of Commerce and Industry (FICCI) in Delhi.
While describing climate change as a “common concern” for every country and industry, the minister underlined that adapting national policies in accordance with green standards was also a source of concern both for India and other developing nations.
The remarks come just a few days after the European Union (EU) struck a deal to impose a carbon tax on imports of cement, steel, aluminum, fertilizers and electricity production.
The EU’s Carbon Border Adjustment Mechanism, the world’s first carbon tax, will come into effect in 2026, but its phase-in will start with reporting obligations in October next year.
India, along with China, Brazil and South Africa, an informal grouping known as the BASIC countries, said at the COP27 climate conference in Egypt last month that such a tax would result in “market distortion” and aggravate the “trust deficit” between the developing nations and the rich countries.
Sitharaman called upon Indian industry to fully understand the new climate taxes and “reset” itself so that domestic exporters were ready for the upcoming “tariff walls”.
“I want the industry to be fully seized of the increased costs they will face in the transition to cleaner energy,” Sitharaman stated.
She said that the Indian government would extend full diplomatic support to domestic exports in order to meet the challenges presented by the new tariffs.
