Key Takeaways
- Sweden offers technology transfer and collaboration to help Indian industries comply with EU’s CBAM regulations
- Indian steel exporters face potential €301 million (₹3,000 crore) in CBAM fees – the highest among exporting nations
- Swedish officials highlight India’s “enormous chance” to build green steel capacity during rapid expansion
- India-EU FTA negotiations progress with 10 of 20 chapters finalized
Sweden has committed to helping Indian industries develop sustainable models to comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM), confirmed Sara Modig, State Secretary at Sweden’s Ministry of Environment & Climate.
The assurance came during discussions about Sweden’s willingness to support Indian companies navigating CBAM regulations. Jan Thesleff, Sweden’s Ambassador to India, echoed similar sentiments.
“Yes, we are holding hands. That’s part of our whole collaboration and I think Sweden has been at the forefront, not only in this (auto) sector but others also, in being very open for technology transfer,” Modig stated.
Understanding CBAM and Its Impact on India
CBAM imposes taxes on European importers who purchase products from countries with higher carbon emissions per tonne than equivalent EU-manufactured goods.
Analysis by European think-tank Sandberg reveals Indian iron and steel exporters to the EU could face approximately €301 million (₹3,000 crore) in CBAM fees – the highest among all countries exporting similar products to the bloc.
FTA Negotiations and Green Transition
As India and the EU advance Free Trade Agreement talks, India has repeatedly raised concerns about CBAM, viewing it as a protectionist barrier for carbon-intensive sectors like steel and cement.
Swedish officials assured support even for these challenging sectors, emphasizing India’s unique position during industrial expansion.
“India is so much in an expansive mode. Your steel industry is growing by 10-12% per year, maybe even more. When you expand your capacity, you have an enormous chance to expand it in a green way,” Modig explained.
She further affirmed India’s capability to scale green steel production and lead the transition. “It’s more difficult to green something that is old, but it’s easy to green something that you implement for the first time. With India’s expansive economy, vision, and government ambition, you can be in the driver’s seat,” she added.
FTA Progress
India and the EU have finalized 10 out of 20 chapters for the Free Trade Agreement. The EU negotiating team is scheduled to visit next week for the next round of talks.
