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Goyal Warns EU Carbon Rules Could Raise Indian Export Costs

By Drooid · Oct 23, 2026, 10:01 AM UTC · How we work

Summary

Story summary

Minister Piyush Goyal criticized EU carbon and deforestation rules at Berlin Global Dialogue.
He warned the EU’s Border Adjustment Mechanism could raise steel, aluminium and cement costs.
He announced the India-EU trade deal should be signed by end-2026 and start in Q1 2027.
He said India secured a steel quota of 1.9 million tonnes in the EU safeguard regime.
He estimated Indian steel exports to the EU could reach 2.8 million tonnes annually.

History

Historical Context

The EU launched the first large-scale emissions trading scheme in 2005, covering roughly 11,000 factories and power plants that emitted about 45 % of the bloc’s CO2. After early overallocation and price collapses, the EU introduced reforms and, in 2026, will activate a Carbon Border Adjustment Mechanism. Indian minister Piyush Goyal warns the CBAM could lift steel, aluminium and cement prices, jeopardising the India-EU trade pact.

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Story summary

Minister Piyush Goyal criticized EU carbon and deforestation rules at Berlin Global Dialogue.
He warned the EU’s Border Adjustment Mechanism could raise steel, aluminium and cement costs.
He announced the India-EU trade deal should be signed by end-2026 and start in Q1 2027.
He said India secured a steel quota of 1.9 million tonnes in the EU safeguard regime.
He estimated Indian steel exports to the EU could reach 2.8 million tonnes annually.

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