The EU is planning to include 180 more products under the scope of its Carbon Border Adjustment Mechanism (CBAM) from January 2028, a move that could increase carbon tax costs on Indian-manufactured exports to Europe.

The European Parliament’s Committee on the Environment, Climate and Food Safety has recommended the expansion of the scope of CBAM.

The European Commission has come forward with this proposal, following the transitional phase of the CBAM (2023–2025), taking into account the lessons learned during this period.


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