Officials stated that despite India’s concerns regarding the regulation, the current implementation will be maintained.

India had strongly criticized the EU’s carbon border tax announced in 2021 and the first of its kind globally warning that the policy could negatively affect steel trade. Under the regulation, which entered into force this month, taxes have begun to be applied to steel, cement, and other carbon-intensive products imported into the EU.

An EU official said, “No element of the CBAM will be phased out in its implementation,” emphasizing that the Carbon Border Adjustment Mechanism will continue in its current form.

Officials also noted that during trade negotiations, India expressed concerns that the EU might grant exemptions to the United States under its agreement with U.S. President Donald Trump.