India, EU to address carbon tax challenges for MSMEs

Through CBAM, the EU will tax imports of select products

- MUKESH JAGOTA

INDIA AND THE European Union (EU) on Friday agreed to address the challenges arising out of implementation of the Carbon Border Adjustment Mechanism (CBAM), particularly for the small and medium enterprises.

The issue of CBAM came up in the second meeting of the India-EU Trade and Technology Council (TTC).

"Both sides discussed the challenges arising out of CBAM implementation, in particular for the small and medium enterprises and agreed to continue addressing them," a joint statement after the TTC meeting said.

CBAM is an EU tool to put a "fair price" on the carbon emitted during the production of goods.