· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Economic Times or enjoy below:
🌍 Driving the news: India criticizes the EU's carbon tax, arguing it undermines fair global trade principles and hampers equitable development in the Global South. Commerce Secretary Sunil Barthwal emphasized that unilateral environmental measures like the EU’s Carbon Border Adjustment Mechanism (CBAM) do not reflect the principles of equity, making it difficult for developing nations to balance climate goals with economic growth
🔭 The context: Barthwal’s remarks were made during the third Voice of Global South Summit, where he highlighted the challenges faced by developing and least-developed countries (LDCs) in responding to measures like the CBAM, which is set to take effect in 2026. He also stressed the need for increased cooperation on food security, better market access for MSMEs, and reduced remittance costs to support economic growth in these nations
🌍 Why it matters: The Global South countries are at a crossroads, needing to both develop sustainably and respond to international measures that may not align with their economic realities. The call for special and differential treatment (SDT) and maintaining policy space is crucial for these countries to achieve their development goals
⏭️ What's next: India is in discussions with the EU to address concerns over the carbon tax's impact on its exports and the broader implications for global trade. The outcome could set a precedent for how developing nations negotiate environmental regulations with developed economies
💬 One quote: “Unilateral environmental measures do not reflect the principles of equity and common but differentiated responsibilities; and hamper equitable world trade,” said Commerce Secretary Sunil Barthwal during the summit
📈 One stat: The EU-CBAM, when fully implemented, could result in a 20-35% import tax on Indian firms, impacting key sectors like steel, cement, and aluminum
Click for more news covering the latest on carbon & sustainable finance
