The Carbon Border Adjustment Mechanism (C-BAM), introduced by the European Union, aims to recognise and reward India's significant investment in green energy, said Amelie de Montchalin, France's permanent representative to the Organisation for Economic Cooperation and Development (OECD).
"The European approach is neither protectionism nor penalization," Montchalin, who was a minister in the French government, told ET. Montchalin is in India for the Kautilya Economic Conclave, being organised by the finance ministry.
C-BAM, which will come into effect in January 2026, imposes a carbon tariff on products like steel, cement and electricity imported to the EU.
On green transition, Montchalin said, "Fighting climate change is not to protect the planet but the people on the planet."
She said that while economic prosperity cannot come at the expense of the planet, at the same time, focusing solely on green transition without addressing poverty is not viable.
Montchalin mentioned that both India and France believe that planning of green transition and economic development should be determined by the countries themselves.
"The decision-making should rest with the national government and they can engage with public and private financial institutions based on what some call country platforms," she said.
Montchalin said that in the realm of green transition, India and France are working closely on a more inclusive global financial governance as well as improving the assessment of risk and returns of green initiatives like renewable energy and solar projects.
In February next year, France will organise a Global AI (Artificial Intelligence) Action Summit, covering subjects such as the state of innovation, impact on labour, cybersecurity (how to make AI safe), governance and AI for good.
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