Carbon tariff may hurt European nations more than India: Officials

Govt assessing possible impact of CBAM on India vis a vis other nations

The government is studying the possible impact of the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) on India vis à vis other countries, as it gears up to tackle the bloc’s move to impose a levy on imported carbon-intensive products.  

As part of a detailed assessment of the possible repercussions of the CBAM, officials believe the EU will also feel the pinch as the carbon tariff will increase inflationary pressure on the bloc. They said considering that the EU is already facing the risk of a recession, the CBAM may hurt European nations more than India.

“The EU is bringing the