NEW DELHI: Finance Minister Nirmala Sitharaman on Thursday said that the European Union’s decision to impose carbon tax is not only ‘not at all moral’ but also goes against the developing countries. The finance minister termed the EU’s move to impose Cross-border Adjustment Mechanism (CBAM) or carbon tax as a mono-sided decision.
“I want to make my industry green so I will impose on you a certain tax because you are coming up with non-green products and with that money I will make my industry green,” the finance minister said while speaking at the CII Global Economic Forum 2023 in New Delhi on Thursday.
She said that every country will have to have resources generated to meet with demands so that we are better adjusted to the green commitments we have made globally. “But cross border imposition and that money going towards somebody else’s green agenda, if anything, is not moral at all,” said the FM.
The comments by the minister assume significance on the backdrop of EU’s decision to impose carbon tax on imports of cement, iron and steel, aluminium, fertilizers, electricity and hydrogen from 1 January 2026. The carbon tax is supposedly imposed to encourage industries to adopt sustainable and green technologies. The EU will also start charging CBAM tax from shipping companies from 1 January 2027.