Issues related to the European Union’s Carbon Border Adjustment Mechanism (CBAM) are unlikely to be part of the proposed free trade agreement between India and the EU, and any concessions sought by New Delhi are expected to be discussed separately between the two sides, sources told Moneycontrol.

“CBAM (concessions from carbon tax) is unlikely to be part of the trade deal with the EU,” a government source said, adding that those talks continue separately.

The EU introduced CBAM on October 1, 2023, a duty that will translate into a 20-35 percent tax on select imports starting January 1, 2026 with an aim to reach net-zero greenhouse emissions by 2050.

While the sectors covered under CBAM include cement, iron and steel, aluminium, fertilisers, electricity and hydrogen, India's iron and ste

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