Goyal was referring to the Carbon Border Adjustment Mechanism (CBAM) which imposes a heavy duty on non-Green steel imports into European borders. This levy is being interpreted as an attempt to make Indian steel exports uncompetitive by taxing them heavily. Commenting on the same, he said, “We are extremely concerned about CBAM and are taking it up with the World Trade Organisation (WTO) very seriously. We shall fight to get a fair deal for the Indian producers and exporters.”
Steel produced in an environment friendly way is categorised as ‘Green’. There is a global push to decarbonise the steel making industry in a bid to mitigate climate change and lower emissions.
“We will always find innovative solutions, but I can assure you that India will not be accepting unfair taxes or levies being put on the Indian steel or aluminium industry or any other industry,” he added.
Representatives also sought an assured off-take for any locally produced green steel in a bid to provide immediate supports which will help decarbonise the sector. This was in addition to calls for a discount in domestic levies on exported steel that will neutralise any impact of the CBAM duties.
The steel sector also flagged concerns about the high cost of coking coal, a key input material for the sector, and noted that there was significant profiteering by sellers at present prices.