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Free Trade AgreementArticle·30 October 2025

Decarbonising India EU FTA Negotiation

By J the App

Executive Summary

The EU’s Carbon Border Adjustment Mechanism (CBAM) is redefining global trade, linking carbon intensity with market access. Known as Carbon tax, it is all set to be imposed with effect from 01.01.2026. As India and the EU negotiate their landmark FTA, carbon costs are becoming the new tariffs. Can trade and climate ambition coexist? J the App by JustIDT takes a quick shot at what Carbon tax is all about and where do we stand on the same.

EU’s Carbon Border Adjustment Mechanism (CBAM) and Its Impact on the India–EU FTA Negotiations

The European Union’s Carbon Border Adjustment Mechanis...

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