EU-INDIA COOPERATION ON CBAM
Earlier this month, Director-General of the European Commission Gerassimos Thomas led a mission of Directorate-General for Taxation and Customs Union (DG TAXUD) officials to New Delhi, focusing on the EU Carbon Border Adjustment Mechanism (CBAM). Engaging with key governmental counterparts and industry stakeholders, Mr Thomas highlighted CBAM's environmental objectives, design, timeline, and opportunities for the Indian industry. He praised India's decarbonization efforts and reaffirmed the EU's commitment to collaborate on these initiatives.
The visit allowed EU representatives to understand the challenges faced by Indian businesses, particularly Micro-, Small, and Medium-sized Enterprises (MSMEs), in implementing CBAM. Technical meetings with the Ministry of Power and the Bureau of Energy Efficiency (BEE) will continue, with an assessment report on the transition period to be submitted to the Council and the European Parliament by the end of next year. This report will be public, inviting comments and discussions from Indian industry and authorities.
Beyond CBAM, the visit underscored mutual interest in deepening exchanges on carbon trading markets, pricing mechanisms, and cooperation in energy efficiency, renewables, and clean tech. On taxation, discussions with Indian government counterparts covered the Two-Pillar Solution addressing digital economy tax challenges, with India confirming its commitment to Pillar 2. Both parties agreed to avoid overlap between the UN and OECD frameworks on international tax cooperation.
Source: DG TAXUD