“India is working towards meeting the country’s energy need with clean sources,” says Union Minister Piyush Goyal

The Indian government discussing the carbon tax mechanism with European countries and the proposed mechanism will not hurt Indian exports, said Union Minister Piyush Goyal on Thursday in New Delhi.

Speaking at ORF’s first edition of the Energy Transition Dialogue, he said that there is a reporting requirement that came up last month and the carbon border adjustment mechanism will start sometime in 2026.

He said that India need not be concerned about it.

He said that if the country from which the goods originate taxes carbon at the level at which the European Union taxes their domestic companies, then there will be no additional tax on our exports to those countries.

“So, if we collect the tax in India itself, there will be no additional tax, he added, saying that India will not have a disadvantage in our exports to Europe. The proposed mechanism will not hurt Indian exports,” said Goyal.

Speaking on the financing aspect of the energy transition, Goyal said that for nations, based on the responsibility metrics, India will have to work out the financing and the availability of technology.

Despite supporting 17 per cent of the global population, India’s contribution to greenhouse gas emissions or the depletion of the ozone layer is barely two and a half per cent. “India is working towards meeting the country’s energy need with clean sources,” said the minister.

Goyal pointed out that the developed countries are saying that they are providing finance and are helping us raise finance, but the reality is that the developed countries have only given lip sympathy.

The models that they have created are largely around private capital and the concessional finance aspect is totally missing, he said.