Nirmala Sitharaman raps developed nations on adjustment tax
Voices concerns over EU’s announcement to impose carbon tax on imports from certain sectors
The CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) will come into effect from January 1, 2026, but from October 1 this year, domestic companies from 7 carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU
New Delhi: Finance Minister Nirmala Sitharaman on Thursday said any move on imposition of cross-border adjustment tax by developed countries to meet their green commitments is morally wrong and goes against the interest of developing countries of ‘Global South’.
“The single mono-sided decision of imposition of border adjustment tax, the logic just goes against the concern of the Global South. But cross-border imposition (of tax) and that money going towards somebody else’s green agenda, if anything, is not moral at all,” Sitharaman said at the CII Global Economic Policy Forum.
The minister said every country will need to generate resources to meet the green commitments made globally. Her comments come in the backdrop of the European Union’s (EU) announcement to impose carbon tax on imports from certain sectors. The CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) will come into effect from January 1, 2026, but from October 1 this year, domestic companies from seven carbon-intensive sectors will have to share data with regard to carbon emissions with the EU.
