EU’s CBAM, deforestation norms unilateral, arbitrary: FM

Finance Minister Nirmala Sitharaman criticizes EU's CBAM and Deforestation rules as harmful to India's economic growth and green energy goals.

Finance Minister Nirmala Sitharaman on Thursday called out the European Union’s initiatives such as the Carbon Border Adjustment Mechanism (CBAM) and Deforestation rules as ‘unilateral’ and ‘arbitrary’ measures that will hurt countries like India and stifle economic growth as well as green energy transition goals.

Terming the CBAM plan a trade barrier, Ms. Sitharaman said more such challenges are likely to be thrown up by the developed countries, posing unforeseeable risks for countries like India that are working towards their ‘net zero’ commitments to cope with climate change.

“There can be many [measures like this] but they are unilateral, and not helpful for countries like India,” she said at the Financial Times Energy Transition Summit.

Asked if India may take up these issues in parleys related to the Free Trade Agreement with the EU, the Minister said, “I am sure it won’t be escalated to the level of hurting the FTA talks as the trade act is an important component of wanting better trade relations, but our concerns will definitely be voiced, We have voiced this this several times, and we will be doing it again.”

Ms. Sitharaman also asserted that the Haryana Assembly poll outcomes, where the BJP emerged with a majority, should dispel any perceptions that the present central government is weaker “inspite of coming back to power for the third time”.

“Yesterday [Tuesday] has dispelled that myth, and therefore, I don’t see the opposition behaving in [a manner] less than what constructive opposition should behave like,” she underlined.