NEW DELHI: The European Union’s carbon border adjustment mechanism will not see any exceptions despite the India-EU free trade agreement, but the two sides are committed to holding technical discussions to find the best way forward, a senior German Environment Ministry official said here.
Jochen Flasbarth, State Secretary at the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, stressed that the CBAM mechanism does not target any specific country but serves as a necessary preventive measure once domestic carbon pricing is introduced in the EU.
“CBAM is not against anyone. Once carbon pricing is introduced, you have to have some kind of protection,” Flasbarth told PTI Videos on Wednesday during his ongoing visit to India, where he held discussions with officials from the ministries of New and Renewable Energy, Energy, Environment, Forest and Climate Change.
“With carbon pricing, we need to do something, and this is something we want to discuss. It is stated in the FTA that there will be technical discussions on how to do it in the best possible way. And of course, it is very clear that we will not make exceptions to any other country in the world. We will not follow pressure from the United States, for example, or others, so India can be sure that there will be no exceptions,” the minister stressed.
The EU’s CBAM programme, which entered its final financial phase in January 2026, imposes duties on carbon emissions embedded in imports of key sectors such as iron, steel, aluminum and cement, among others. This has raised concerns in India, especially regarding carbon-intensive exports such as steel, which may face additional costs, potentially offsetting some of the tariff benefits from the FTA.
Flasbarth described the free trade agreement as of great importance amid increasing global trade barriers and the difficult geopolitical situation. He pointed out that although environment and climate issues are not the core of the agreement’s text, they remain central given the European Union’s commitment to climate neutrality.
“The free trade agreement that was agreed upon… will have to be ratified soon. We also agreed to cooperate further on carbon pricing and emissions trading systems,” Flasbarth said.
Flasbarth also said that India and Germany will ratify an agreement on critical minerals during the next meeting of the intergovernmental committee.
“Critical minerals are very important for both countries. Currently, both countries depend on a single source, mainly from China. Of course, it is in the interest of both countries to reduce dependence on a single source,” he said.
Sources indicate that the government conference between the two countries is likely to be held in June 2026.
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