‘You’re Inviting Disaster’: Piyush Goyal Calls Out Europe Over Carbon Emissions, Climate Commitments

News world ‘You’re Inviting Disaster’: Piyush Goyal Calls Out Europe Over Carbon Emissions, Climate Commitments

Last Updated:October 23, 2026, 07:18 IST

Speaking at the Berlin Global Dialogue, Goyal said the EU’s carbon-related regulations and import duties on steel were placing an additional burden on businesses and consumers.

Union Commerce and Industry Minister Piyush Goyal on Thursday criticised the European Union’s carbon tax on steel, warning that the additional costs imposed through the bloc’s Carbon Border Adjustment Mechanism (CBAM) could increase the cost of living and weaken the competitiveness of European industries.

Speaking at the Berlin Global Dialogue, Goyal said the EU’s carbon-related regulations and import duties on steel were placing an additional burden on businesses and consumers.

“You put a CBAM (Carbon Border Adjustment Mechanism) on yourself. You put a 50 per cent import duty on steel to bring it into your country. You’re inviting disaster. Your cost of living will go up," Goyal said.

The minister said the growing number of regulations was making European industries less competitive in global markets, adding that businesses were struggling to cope with the additional requirements.

“We’ve lost count. You keep adding to your regulations, add to the burden of your industry, make yourself uncompetitive," he said.

Goyal also warned that higher prices of steel, aluminium and cement could increase the cost of infrastructure projects across Europe, including ports, airports, highways and utility networks.

“Now, imagine going forward, every infrastructure, whether it’s a port or an airport or your autobahns in Germany or your expressways, your utilities, your water pipelines, you name the infrastructure with costlier steel, costlier aluminium, costlier cement, with all the overlay of CBAM and deforestation rules," he said.

He further cautioned that regulatory restrictions could prompt trading partners to introduce retaliatory measures, potentially affecting European businesses.

“And in this reciprocal world, you bring in a regulation and stop some other country from working with you. They’ll bring in two regulations, which will hurt your businesses," Goyal said.

The minister said the cumulative effect of these measures could drive up inflation and the cost of living while undermining Europe’s ability to compete internationally. He also pointed to the challenges facing the region’s automobile sector.

“You will not be able to compete in global markets. Your auto industry is suffering that already," he said.

Highlighting India’s approach to international trade, Goyal said the country was working to improve its competitiveness and establish balanced trade partnerships with other nations.

“We’ve got fair, equitable, and balanced agreements with every one of the partners with whom we are working," he said, adding that India was building partnerships based on competitiveness and complementary strengths.

India has raised concerns over the EU’s CBAM, which covers carbon-intensive imports such as steel, aluminium and cement. Under the mechanism, importers must account for emissions embedded in certain goods entering the European market, raising concerns among exporters about additional compliance costs and potential trade barriers.

Goyal also highlighted India’s share of global emissions, saying the country accounts for only 3-3.5 per cent of global carbon emissions while supporting around 17 per cent of the world’s population.

“Who’s responsible for this mess in the first place? Where did the ozone layer get damaged? Who sent all that carbon into the atmosphere?… I represent 17% of the world’s population, but my contribution to global carbon emissions is less than 3%," Goyal said.

He claimed that Europe’s per capita carbon emissions and environmental impact remained significantly higher than India’s.

“You caused the problem…Even today, as we sit here, my per capita contribution to carbon emissions is probably less than 10% or 15% of yours. Even today, Europe’s per capita contribution to carbon emissions—and its per capita environmental impact—is probably seven or eight times that of India," he said.

Goyal added that India was balancing its environmental responsibilities with the need to meet the energy and food requirements of 1.4 billion people while safeguarding national security. He also highlighted the country’s efforts to promote sustainability and clean energy.

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Aanchal SinhaSub Editor

Aanchal is the Sub-Editor at News18.com, with more than four years of experience in national and international news. My work involves covering breaking news, politics, current affairs and developments...Read More

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