India, Jan. 2 -- The European Union's Carbon Border Adjustment Mechanism (CBAM) has taken effect, placing a carbon levy on imports of emissions-intensive goods.

Indian exports of steel, aluminium, cement and fertilisers are expected to face higher costs, potentially affecting competitiveness.

Developing countries argue that uniform carbon standards ignore historical responsibility and economic capacity differences.

India estimates the levy could add an average tax burden of around 25 per cent on affected exports to the EU.

The debate has intensified calls for global dialogue on how climate policies interact with trade and development.

The European Union's Carbon Border Adjustment Mechanism (CBAM) came into effect on January 1, 2026, ...