Union Minister Piyush Goyal Criticises EU Carbon Tax on Steel at Berlin Global Dialogue

Union Commerce and Industry Minister Piyush Goyal has raised strong objections to the European Union's carbon tax on steel and other industrial materials. Speaking at the Berlin Global Dialogue panel discussion titled 'New Era, New Alliances: The Third Path?' on Thursday, October 22, 2026, Goyal stated that the bloc was inviting disaster by imposing additional costs that could undermine the competitiveness of its industries.

Addressing the gathering, Goyal highlighted that the EU's Carbon Border Adjustment Mechanism (CBAM) alongside a 50 per cent import duty on steel would inevitably drive up expenses for both European businesses and consumers. He noted that the growing volume of regulations is adding an unnecessary burden to local industries.

Impact on Infrastructure and Global Competitiveness

The minister cautioned that higher costs for essential industrial materials such as steel, aluminium, and cement would directly affect wider infrastructure development across Europe. He pointed out projects including ports, airports, German autobahns, expressways, utilities, and water pipelines could face elevated expenses due to the overlay of CBAM and deforestation rules.

Furthermore, Goyal warned that these regulatory restrictions could invite reciprocal measures from global trading partners, which would ultimately hurt European businesses. He noted that the cumulative impact of these policies risks pushing up the cost of living, increasing inflation, and weakening global competitiveness, citing ongoing struggles in the European auto industry as an example.

India's Trade Approach and Emissions Share

Amid these regulatory discussions, Goyal outlined India's focus on building competitive and balanced trade partnerships globally. He stated that India has established fair, equitable, and balanced agreements with its partners based on competitiveness and complementary strengths.

India has consistently raised concerns regarding the EU's CBAM, which targets carbon-intensive imports like steel, aluminium, and cement. The mechanism requires importers to account for embedded emissions, leading to exporter apprehensions regarding compliance costs and potential trade barriers. Additionally, Goyal noted that India accounts for only 3 to 3.5 per cent of global carbon emissions despite supporting approximately 17 per cent of the world's population.

"Regulatory measures like the European Union's Carbon Border Adjustment Mechanism introduce complex compliance challenges and additional cost burdens for global trade. For businesses operating in international markets, navigating such stringent tariffs requires strategic foresight and adaptability. Policymakers and industry leaders must carefully balance environmental objectives with economic competitiveness to avoid disrupting global supply chains and infrastructure development." — Dr. Shishir Gupta, Founder & CEO, StartupLanes