Economy

Jaishankar criticizes EU carbon levy, says CBAM is unacceptable for India.

Published On Thu, 12 Jun 2025
Ronit Dhanda
1 Views
news-image
Share
thumbnail
External Affairs Minister S. Jaishankar on Wednesday expressed India’s strong objections to the European Union’s Carbon Border Adjustment Mechanism (CBAM), saying its unacceptable for one region to impose standards on the rest of the world. Speaking in an interview with the European news platform Euractiv during his visit to Belgium and France, Jaishankar also discussed India’s relationship with China and emphasized the significance of the proposed EU-India free trade agreement. He argued that India, with its 1.4 billion people, offers skilled labor and a more dependable economic alternative compared to China.
Referring to recent discussions with European companies operating in India, Jaishankar noted that many are choosing India to reduce risks in their supply chains. He said firms are becoming more cautious about where their data is stored, favoring secure and reliable locations over mere efficiency. “Would you want sensitive data in the hands of those you don’t fully trust?” he asked.
When asked about the EU’s efforts to set global environmental standards through its Green Deal, including measures like CBAM, Jaishankar made it clear that India opposes certain aspects of it. “Let’s not pretend otherwise—we disagree with parts of it. We have serious concerns about CBAM and have been vocal about them. We reject the idea that a single region can dictate standards for the entire world,” he stated.
The CBAM is a proposed EU tax on the carbon footprint of goods imported from countries like India and China. While the EU acknowledged India’s concerns earlier this year and indicated willingness to address them, developing countries have raised alarms at global climate summits, warning that such tariffs could damage their economies and threaten livelihoods.
On India’s decision not to join Western sanctions on Russia, Jaishankar reiterated that India believes conflicts cannot be resolved through war and that the solution should not come from the battlefield. He emphasized that India maintains good relations with both Russia and Ukraine and considers its own national experience, history, and interests when making foreign policy decisions. Referring to past international responses to India’s own security challenges, such as the post-independence conflict over Kashmir, Jaishankar pointed out the West’s lack of support then. He questioned the moral standing of countries that now advocate for global principles after being silent during India’s struggles.
Asked about India’s view of former U.S. President Donald Trump, Jaishankar said India approaches international relations pragmatically. “We aim to strengthen all partnerships that benefit us, and our ties with the U.S. are critically important. It’s not about individuals or who holds office,” he said. On the same day, Jaishankar also met with European Parliament President Roberta Metsola. She posted on X that both sides look forward to converting commitments into action as free trade negotiations progress, aiming to deepen the EU-India strategic partnership.
Disclaimer: This image is taken from Business Standard.