{"id":380865,"date":"2025-05-30T10:46:03","date_gmt":"2025-05-30T08:46:03","guid":{"rendered":"https:\/\/climatescience.press\/?p=380865"},"modified":"2025-05-30T10:46:05","modified_gmt":"2025-05-30T08:46:05","slug":"india-rejects-carbon-tax-backs-fossil-fuels-and-trade-in-defiance-of-green-policies","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=380865","title":{"rendered":"India Rejects Carbon Tax, Backs Fossil Fuels and Trade in Defiance of Green Policies"},"content":{"rendered":"\n
\"\"
ChatGPT<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

By Vijay Jayaraj<\/p>\n\n\n\n

Like many developing economies, India faces coercion from the United Nations and Europe to conform to climate policies, especially through the imposition of carbon taxes on imports into their countries. But Delhi is not about to bend to such tactics.<\/p>\n\n\n\n

\u201cIf they (EU and U.K.) put in a carbon tax, we\u2019ll retaliate,\u201d said India\u2019s Union Minister Piyush Goya<\/a> at the Columbia India Energy Dialogue in New York City. \u201cI think it will be very silly, particularly to put a tax on friendly countries like India.\u201d<\/p>\n\n\n\n

That isn\u2019t a bluff. It\u2019s a moral, strategic and scientific imperative grounded in realpolitik and economic logic.<\/p>\n\n\n\n

India and the U.K. have inked a trade deal that promises to boost bilateral trade by more than $33 billion and increase U.K. gross domestic product and wages by many billions.<\/p>\n\n\n\n

On paper, this deal is a triumph for both nations, removing duties on 99% of Indian goods entering the U.K. For India, this means greater market access for textiles, agriculture and manufactured goods \u2013 sectors that employ millions and drive economic growth.<\/p>\n\n\n\n

Yet, the U.K.\u2019s pending Carbon Border Adjustment Mechanism (CBAM)<\/em><\/strong> remains in place, with no exemptions for Indian steel, cement and aluminum, despite the trade agreement.<\/p>\n\n\n\n

Starting January 2027, the U.K. is to impose a levy on these \u201ccarbon-intensive\u201d imports, supposedly to compensate for the difference between the U.K.\u2019s domestic carbon tax and India\u2019s lower assessment at home. The tax on imports is to prevent \u201ccarbon leakage\u201d \u2014 the idea that emissions are \u201coutsourced\u201d to countries with fewer regulations.<\/p>\n\n\n\n

This hocus-pocus is nothing more than repugnant virtue signaling that penalizes manufacturers in developing countries for using the very fossil fuels that powered the West\u2019s rise in the 19th and 20th centuries.<\/p>\n\n\n\n

India\u2019s export of these products to the EU and U.K. are a critical part of its economic engine. In 2022 alone, 27% of India\u2019s iron, steel and aluminum exports went to the EU<\/a>.<\/p>\n\n\n\n

Yet, the EU\u2019s CBAM, set to take effect in 2026 prior to the U.K. tax, would slap tariffs of 20-35% on these goods.<\/p>\n\n\n\n

For Indian exporters, this translates to a steep cost increase. India\u2019s predominantly coal-based blast furnaces have higher carbon intensity<\/a> of around 2.5-2.6 metric tons of CO\u2082 emissions per metric ton of steel produced in comparison to the global average of 1.85 metric tons of CO2 <\/sub>. This means a higher CBAM assessment for India.<\/p>\n\n\n\n

Profit margins for steel exports could shrink, while aluminum exporters might face a sudden surcharge once indirect emissions from coal power are factored in. Take the case of Tata Steel, which employs over 75,000 people and produces 30 million tons of steel annually. A 20-35% carbon tax under the EU\u2019s CBAM would erode profit margins, forcing layoffs or price hikes that could cost it market share.<\/p>\n\n\n\n

India\u2019s dismissal of the climate war on fossil fuels<\/em><\/strong> is grounded in necessity and science. Economically, the nation aims to become a $5 trillion economy by 2027, a goal that demands rapid industrialization and infrastructure growth.<\/p>\n\n\n\n

Steel, cement, and aluminum are the building blocks of this ambition, used in everything from bridges to skyscrapers, and an important source of export revenue. Fossil fuels, particularly coal, are the lifeblood of these industries, providing the energy needed to keep production costs low and globally competitive.<\/p>\n\n\n\n

Coal generates more than 70% of India\u2019s electricity. It powers the factories that make steel and cement. It keeps the lights on in rural hospitals and schools. And it fuels the economic engine that has lifted 415 million people out of poverty in the past two decades.<\/p>\n\n\n\n

The modern crusade against fossil fuels is based on the false premise of a disintegrating global environment. But that is not the case. Carbon dioxide is not a toxin. It is a colorless, odorless gas essential to life on Earth.<\/em><\/strong><\/p>\n\n\n\n

Even the term \u201ccarbon emissions\u201d is a sleight of hand. The emissions are carbon dioxide but calling them \u201ccarbon\u201d conjures images of potentially harmful soot and smoke. Fear perpetrated by lies have made people less resistant to destructive policies like CBAM.<\/p>\n\n\n\n

However, India won\u2019t bow to carbon taxes and it won\u2019t join an unscientific climate war that sacrifices its future. The U.K. and EU would do well to listen, lest they find themselves on the losing end of an Asian-dominated trade battle over manufactured goods.<\/p>\n\n\n\n

This commentary was first published at Real Clear World<\/em><\/a> on May 24, 2025.<\/p>\n\n\n\n

Vijay Jayaraj<\/a> is a Science and Research Associate at the <\/em>CO\u2082 Coalition<\/em><\/a>, Arlington, Virginia. He <\/em>holds an M.S. in environmental sciences from the University of East Anglia and a postgraduate degree in energy management from Robert Gordon University, both in the U.K., and a bachelor\u2019s in engineering from Anna University, India.<\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Like many developing economies, India faces coercion from the United Nations and Europe to conform to climate policies, especially through the imposition of carbon taxes on imports into their countries. But Delhi is not about to bend to such tactics.<\/p>\n","protected":false},"author":121246920,"featured_media":380867,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691829997,691835441,691818228,691818237,691835440],"class_list":["post-380865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-carbon-dioxide-co","tag-eu-and-u-k","tag-fossil-fuels","tag-india","tag-u-k-s-carbon-border-adjustment-mechanism-cbam","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/0ChatGPT-Image-30.-Mai-2025-10_44_48.png?fit=1024%2C1024&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1B4Z","jetpack-related-posts":[{"id":421935,"url":"https:\/\/climatescience.press\/?p=421935","url_meta":{"origin":380865,"position":0},"title":"The EU\u2019s Carbon Border Tax Took Effect on January 1","author":"uwe.roland.gross","date":"01\/18\/2026","format":false,"excerpt":"On January 1, the European Union\u2019s carbon border tax came into force. The Carbon Border Adjustment Mechanism (carbon tariff) forces companies exporting aluminum, cement, steel, fertilizer, and other goods with a heavy carbon content into the EU to pay for their products\u2019 carbon emissions. According to the European Union, the\u2026","rel":"","context":"In \"carbon dioxide (CO\u2082)\"","block_context":{"text":"carbon dioxide (CO\u2082)","link":"https:\/\/climatescience.press\/?tag=carbon-dioxide-co%e2%82%82"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQNWsnU9zveXHnYlz2CYeiQ1GTEQCIeRV4juI8-ELLfBsganmFGnCUgWszgRHu-DsAJ-OAtwb7PItImuqRVVDtRnriVZkpw_Kvfesb8qKjghIMSn_kyW6XDkRKulY8xv.jpeg?fit=1200%2C730&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQNWsnU9zveXHnYlz2CYeiQ1GTEQCIeRV4juI8-ELLfBsganmFGnCUgWszgRHu-DsAJ-OAtwb7PItImuqRVVDtRnriVZkpw_Kvfesb8qKjghIMSn_kyW6XDkRKulY8xv.jpeg?fit=1200%2C730&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQNWsnU9zveXHnYlz2CYeiQ1GTEQCIeRV4juI8-ELLfBsganmFGnCUgWszgRHu-DsAJ-OAtwb7PItImuqRVVDtRnriVZkpw_Kvfesb8qKjghIMSn_kyW6XDkRKulY8xv.jpeg?fit=1200%2C730&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQNWsnU9zveXHnYlz2CYeiQ1GTEQCIeRV4juI8-ELLfBsganmFGnCUgWszgRHu-DsAJ-OAtwb7PItImuqRVVDtRnriVZkpw_Kvfesb8qKjghIMSn_kyW6XDkRKulY8xv.jpeg?fit=1200%2C730&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQNWsnU9zveXHnYlz2CYeiQ1GTEQCIeRV4juI8-ELLfBsganmFGnCUgWszgRHu-DsAJ-OAtwb7PItImuqRVVDtRnriVZkpw_Kvfesb8qKjghIMSn_kyW6XDkRKulY8xv.jpeg?fit=1200%2C730&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":281499,"url":"https:\/\/climatescience.press\/?p=281499","url_meta":{"origin":380865,"position":1},"title":"Europe Launches a Carbon Tax Attack Against the US Economy","author":"uwe.roland.gross","date":"10\/02\/2023","format":false,"excerpt":"From Watts Up With That? Essay by Eric Worrall This new carbon tax is a slap in the face for every non-EU nation which has contributed to\u00a0Europe\u2019s attempts to contain Russia. Europe takes climate fight global as carbon border tax goes live The Carbon Border Adjustment Mechanism enters a trial\u2026","rel":"","context":"In \"Carbon Tax\"","block_context":{"text":"Carbon Tax","link":"https:\/\/climatescience.press\/?tag=carbon-tax"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0shutterstock-1387517006.webp?fit=1200%2C747&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0shutterstock-1387517006.webp?fit=1200%2C747&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0shutterstock-1387517006.webp?fit=1200%2C747&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0shutterstock-1387517006.webp?fit=1200%2C747&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0shutterstock-1387517006.webp?fit=1200%2C747&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":282350,"url":"https:\/\/climatescience.press\/?p=282350","url_meta":{"origin":380865,"position":2},"title":"Environmentalist says ‘all’ presidents, prime ministers will delay gas car bans","author":"uwe.roland.gross","date":"10\/07\/2023","format":false,"excerpt":"Fox Business Copenhagen Consensus President Bjorn Lomborg on Bill Gates claiming innovation will combat climate change, a carbon tax and U.K. Prime Minister Rishi Sunak delaying the ban on gas cars until 2035. There are some smart climate solutions the world should definitely pursue. In an interview on Varney &\u2026","rel":"","context":"In \"Bill Gates\"","block_context":{"text":"Bill Gates","link":"https:\/\/climatescience.press\/?tag=bill-gates"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Screenshot-2023-10-07-174249.png?fit=981%2C568&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Screenshot-2023-10-07-174249.png?fit=981%2C568&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Screenshot-2023-10-07-174249.png?fit=981%2C568&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0Screenshot-2023-10-07-174249.png?fit=981%2C568&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":403831,"url":"https:\/\/climatescience.press\/?p=403831","url_meta":{"origin":380865,"position":3},"title":"Europe\u2019s Days of Carbon Colonialism are Numbered","author":"uwe.roland.gross","date":"09\/21\/2025","format":false,"excerpt":"The European Union is intent on implementing the world\u2019s first tax on the carbon content of imported goods from January 1st 2026. The EU\u2019s celebrated climate policy experiment, the Carbon Border Adjustment Mechanism (CBAM), will make its debut as the crowning jewel of its Green New Deal to make Europe\u2026","rel":"","context":"In \"\u201cclimate club\u201d\"","block_context":{"text":"\u201cclimate club\u201d","link":"https:\/\/climatescience.press\/?tag=climate-club"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgIJHeLEkRjtEzA9152bA_oTap58U3s8I71sETP02X8KAnsDaGtQMb-nxLRyQlBeH2BK3QRHB-_qLeCmSCJpSfIhVJnbZyjK96b8bpV2QO5v3C7Gu-m_NUjfObNGcSDg_Y4hvVKoUOy2G61LCmGC1Ki_EEFQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgIJHeLEkRjtEzA9152bA_oTap58U3s8I71sETP02X8KAnsDaGtQMb-nxLRyQlBeH2BK3QRHB-_qLeCmSCJpSfIhVJnbZyjK96b8bpV2QO5v3C7Gu-m_NUjfObNGcSDg_Y4hvVKoUOy2G61LCmGC1Ki_EEFQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgIJHeLEkRjtEzA9152bA_oTap58U3s8I71sETP02X8KAnsDaGtQMb-nxLRyQlBeH2BK3QRHB-_qLeCmSCJpSfIhVJnbZyjK96b8bpV2QO5v3C7Gu-m_NUjfObNGcSDg_Y4hvVKoUOy2G61LCmGC1Ki_EEFQ.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgIJHeLEkRjtEzA9152bA_oTap58U3s8I71sETP02X8KAnsDaGtQMb-nxLRyQlBeH2BK3QRHB-_qLeCmSCJpSfIhVJnbZyjK96b8bpV2QO5v3C7Gu-m_NUjfObNGcSDg_Y4hvVKoUOy2G61LCmGC1Ki_EEFQ.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgIJHeLEkRjtEzA9152bA_oTap58U3s8I71sETP02X8KAnsDaGtQMb-nxLRyQlBeH2BK3QRHB-_qLeCmSCJpSfIhVJnbZyjK96b8bpV2QO5v3C7Gu-m_NUjfObNGcSDg_Y4hvVKoUOy2G61LCmGC1Ki_EEFQ.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":448048,"url":"https:\/\/climatescience.press\/?p=448048","url_meta":{"origin":380865,"position":4},"title":"Can US and India Forge a \u2018Big, Beautiful\u2019 Energy Deal?","author":"uwe.roland.gross","date":"06\/02\/2026","format":false,"excerpt":"U.S. Secretary of State Marco Rubio\u2019s visit to India produced much-needed diplomatic momentum, with more ground to cover on the energy front. Even with an Indian commitment to purchase $500 billion in American goods over the next five years, Rubio\u2019s stated desire to supply \u201cas much energy\u201d as India is\u2026","rel":"","context":"In \"Climate politics\"","block_context":{"text":"Climate politics","link":"https:\/\/climatescience.press\/?tag=climate-politics"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/06\/0-ChatGPT-Can-US-and-India-Forge-a-Big-Beautiful-Energy-Deal.png?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/06\/0-ChatGPT-Can-US-and-India-Forge-a-Big-Beautiful-Energy-Deal.png?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/06\/0-ChatGPT-Can-US-and-India-Forge-a-Big-Beautiful-Energy-Deal.png?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/06\/0-ChatGPT-Can-US-and-India-Forge-a-Big-Beautiful-Energy-Deal.png?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/06\/0-ChatGPT-Can-US-and-India-Forge-a-Big-Beautiful-Energy-Deal.png?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":289929,"url":"https:\/\/climatescience.press\/?p=289929","url_meta":{"origin":380865,"position":5},"title":"Economic Progress and Fossil Fuels: The Elephant in the Room at U.N. Climate Conference","author":"uwe.roland.gross","date":"12\/04\/2023","format":false,"excerpt":"The mainstream media are gearing up to bombard people with terms like \u201cclimate emergency,\u201d \u201cclimate justice\u201d and \u201cclimate equity\u201d in anticipation of this week\u2019s start of the 28th\u00a0United Nations\u00a0Conference of the Parties in Dubai. They might even introduce catchphrases and announce historic breakthroughs in emission-reduction diplomacy. The public relations messaging\u2026","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/image-112.png?fit=878%2C730&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/image-112.png?fit=878%2C730&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/image-112.png?fit=878%2C730&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/image-112.png?fit=878%2C730&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/380865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=380865"}],"version-history":[{"count":3,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/380865\/revisions"}],"predecessor-version":[{"id":380869,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/380865\/revisions\/380869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/380867"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=380865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=380865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=380865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}