India Challenges EU's Green Economy Rules

Union Minister Piyush Goyal criticized the EU's environmental regulations, arguing they are unfair and violate international principles. He expressed concerns over the Carbon Border Adjustment Mechanism and the Deforestation Regulation impacting Indian exporters, underlining the lack of support from wealthier nations primarily responsible for pollution.

Union Minister Piyush Goyal vocally contested the European Union's (EU) new green economy regulations during a press conference in Delhi on Thursday. Goyal argued that these rules, including the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR), are unjust and conflict with the "Common but Differentiated Responsibilities" (CBDR) principles.

Goyal conveyed India's dissatisfaction with these unilateral regulations in discussions with his French counterpart, emphasizing that they fail to garner global acceptance. He criticized developed nations for their limited financial and technological support, despite being the major contributors to pollution, and stressed that CBDR should guide the global transition to sustainable energy and net-zero emissions.

The EU's CBAM seeks to curb carbon leakage by imposing carbon costs on imports such as steel, aluminum, cement, and other commodities. Indian exporters, particularly in steel and aluminum sectors, face challenges with these stringent standards, while small and medium enterprises (SMEs) may struggle due to resource constraints. Meanwhile, the EUDR demands deforestation-free proof for key agricultural exports, increasing compliance burdens.

(With inputs from agencies.)