Carbon Border Adjustment Mechanism (CBAM): India's varied perspectives at COP28

Seema Arora, Deputy Director General at the Confederation of Indian Industry (CII), recognised the need for a proactive approach, dismissing the idea of challenging CBAM through the WTO and highlighting that the same rules apply to all companies. Instead, she advocates for a strategy that involves collecting the tax within India and utilising the funds for domestic decarbonisation efforts, including support for micro, small, and medium enterprises (MSMEs).

She pointed out, "I don’t think there is any point in saying we can’t accept it because it is not non-discriminatory. They are saying the same rule applies to our companies also. So you can’t fight it in the WTO, although I know they are going to fight, which is okay. But I don’t think much result will come out of that."

While Arora's approach aligns with the government's considerations, Tata Steel proposes an alternative solution. Tata Steel's Vice President of Safety, Health, and Sustainability, Rajiv Mangal, emphasised the positive aspects of CBAM, stating that it forces the market to acknowledge and pay the actual cost of emissions.