Commerce minister Piyush Goyal said on Friday that India will “retaliate” against unfair carbon taxes imposed by the EU.

“Bharat will address the problem of CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) with confidence, and we will find solutions. We will see how we can convert CBAM to our advantage if it comes in. Of course, I will retaliate. You need not worry about it,” Goyal said here at an industry chamber event.

CBAM will come into effect from January 1, 2026.

FM Nirmala Sitharaman said on Thursday any move by the developed nations to unilaterally impose a cross-border adjustment tax to meet their green commitments is morally wrong and goes against the interest of developing countries of the ‘‘Global South’’.

India is in talks with South Africa, Taiwan, and several developing nations to contest CBAM at the WTO.

Policymakers have said the tax is estimated to hit metal exports worth over $8 billion annually, starting 2026.