External Affairs Minister S Jaishankar expressed strong concerns over the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) during his recent talks in Brussels. He labeled the CBAM as “unacceptable,” raising issues about its potential impact on global trade and developing economies.
Jaishankar emphasized that the CBAM could disproportionately affect countries like India, which are still pursuing development and industrial growth. He argued that such measures might lead to trade distortions and could undermine international cooperation on climate change.
Key Points Raised by S Jaishankar
- The CBAM poses challenges for exporters in developing countries due to added costs.
- It may create barriers to trade, affecting economic growth and development.
- The mechanism could conflict with principles of fairness and equity in climate action.
- There is a need for greater dialogue and cooperation to ensure climate policies do not hinder global economic progress.
The discussions in Brussels highlighted the need for the EU and other international stakeholders to consider the concerns of emerging economies while designing climate-related regulations. Jaishankar called for solutions that balance environmental goals with economic realities, ensuring a just transition for all countries.
