Two official teams from India, EU to discuss carbon tax issues: Official

India and the European Union have constituted two teams to discuss issues pertaining to the EU's carbon tax, which will kick in from October this year, a government official said.

The European Union (EU) is introducing the Carbon Border Adjustment Mechanism (europe) from October 1 this year. It would have an impact on seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products.

India raised these issues in the Trade and Technology Council (TTC) meeting between the two regions in Brussels in May.

In that meeting, the official said, India presented the problems which would be faced by domestic MSMEs due to this tax and also matters related to modalities to comply with that.

"So now they have agreed that there will be a channel opened for discussions. So there will be a team from their side and our side discussing this. The two teams would discuss about the implications of the notification of the EU," the official, who did not wish to be named, said.

India has suggested the EU to recognise some certifying agencies in India as it would be an expensive affair for a small Indian exporter to take certificates from the EU. India has asked for recognition to its Carbon Credit Trading Scheme (CCTS), which is under preparation.