If a company in the EU is importing stuff, that's part of five industries, it will have to buy a carbon certificate first. This could eliminate the price discount on steel between the EU and other countries. India exports over 5 billion euros worth of CBAM related products to the EU. If EU importers have to pay taxes on these products now, it makes Indian goods more expensive.
In today’s episode for 22nd November 2022, we offer a simplified explainer on why the EU wants to impose the world’s first-ever transnational carbon tax and why India isn’t happy about it