No concessions for New Delhi over CBAM regulations

India did not receive any concessions on the European Union's (EU) carbon regulations as part of the free trade agreement (FTA) concluded between the two sides.

- SHREYA NANDI

New Delhi, however, has secured a commitment that any flexibility offered by the EU on the carbon border adjustment mechanism (CBAM) to other trading partners will also apply to Indian exporters. Government officials said the EU's CBAM regulation — which came into force on January 1—was among the toughest issues in the negotiations, as Brussels was unwilling to provide any country-specific flexibility or exemption.

‘The FTA also provides for a rebalancing of rights if EU measures under the regulation impair the benefits of the pact for Indian firms, or if the EU fails to establish adequate grounds for such measures.