India to Oppose EU Carbon Tax at COP31, Citing Fossil Fuel Reliance

At the outset of the UN climate conference scheduled for 2025, the Ministry of External Affairs said India will vote against the European Union's carbon border adjustment mechanism, a proposal that would impose a levy on imports from nations with weaker climate regulations. The government maintains that such a tax would place Indian exporters at a competitive disadvantage, given that many domestic industries continue to rely on coal, oil and natural gas for power and process energy. Delhi stressed that any climate‑related pricing tool must be applied universally and should not create trade distortions, urging the EU to factor in the developmental realities of emerging economies. Senior officials reiterated the position ahead of the summit, while also calling on Indian firms to accelerate the transition to renewable energy to meet future compliance requirements.