Piyush Goyal, India's Commerce and Industry Minister, is trending because of what he said in Berlin on 23 October 2026. He attacked the European Union's carbon border tax, known as CBAM, and the West's record on climate money. One news headline quoted him warning the EU that "living costs will rise, inflation will be high" because of the tax. The fight matters most for Indian steel exporters, who now have to account for the carbon in every tonne they ship to Europe. And it comes while India and the EU are trying to sign their free trade agreement.
Below we cover what he said, how CBAM works in plain words, why steel is the pressure point, and what to watch over the next few weeks.
What Piyush Goyal said about the EU carbon tax in Berlin
Goyal spoke at the Berlin Global Dialogue on 23 October 2026, during his official visit to Germany. Newsgram reported these lines, which got the widest coverage:
- On blame: "Who's responsible for this mess in the first place?"
- On India's share: "I support 17% of the world's population, but my contribution to carbon emissions is less than 3%."
- On climate finance: Of the $100 billion-a-year pledge rich countries made to developing ones, Goyal said in his Berlin speech of 23 October 2026: "we haven't seen a nickel or dime of that. It's all promises."
- On CBAM: He said the EU's carbon border tax ignores the principle of "common but differentiated responsibilities".
He also said India's per-capita emissions are about 10–15% of Europe's. The emissions numbers are Goyal's own. The coverage didn't check them independently, and it didn't say whether "less than 3%" meant annual or historical emissions. Treat them as his framing, not as settled data.
What "common but differentiated responsibilities" means
The principle is part of the UN climate framework. All countries share the job of tackling climate change, but countries that industrialised earlier and polluted more should carry more of the burden. India's argument is that CBAM flips this round: it charges developing-country producers at the EU border as if they had the same history and the same means as European industry.
CBAM in plain words
The Carbon Border Adjustment Mechanism is the EU's way of putting a carbon price on certain imports. European factories already pay for their emissions under the EU Emissions Trading System. Brussels doesn't want them undercut by imports made where carbon costs nothing, so CBAM puts a matching charge on goods coming in.
Here's how it works, according to the European Commission's CBAM page:
- Which goods: iron and steel, aluminium, cement, fertilisers, hydrogen and electricity.
- Who pays: the EU importer, not the Indian exporter directly. But the cost, and the paperwork, get passed back up the supply chain.
- How much: it depends on the "embedded emissions" in the product, meaning the CO₂ released while making it, priced in line with the EU carbon market.
- Credit for carbon prices already paid: if a carbon price was already paid in the country where the goods were made, it can reduce the charge.
- Phasing: a reporting-only transition ran from October 2023 to the end of 2025. The definitive phase, where costs apply, began on 1 January 2026.
In practice, CBAM works like an import tariff that grows with how dirty the production process is. The EU calls it a climate tool. India and other developing economies see it as a trade barrier wearing green clothes.
Why steel is the pressure point for Indian exporters
Steel is where CBAM hits India hardest, for three reasons:
- Coal-heavy production. Most Indian steel comes from blast furnaces and coal-based processes, which emit more CO₂ per tonne than the scrap-based electric furnaces common in Europe. More embedded emissions means a bigger CBAM bill.
- Data burden. EU importers need verified emissions figures from the plant. Exporters who can't supply them risk having default values applied, which usually assume higher emissions. Large integrated mills can build this reporting. Smaller exporters and MSME suppliers of steel products find it much harder.
- Price competition. If the CBAM cost makes Indian steel dearer in Europe, buyers can switch to suppliers with cleaner production or lower carbon bills.
This is the logic behind the "living costs will rise, inflation will be high" line in the headline: a border tax on basic materials like steel and cement ends up in the price of everything built with them, in Europe as well as for exporters.
What it likely means for exporters (our reading)
The research behind this post doesn't include an official estimate of how much CBAM will cost Indian steel, and we won't invent one. The direction is clear, though. Expect pressure on margins for EU-bound steel, more demand for plant-level emissions verification, and more investment in lower-carbon routes such as renewable power and gas- or hydrogen-based processes among exporters who want to keep their European customers.
How CBAM collides with the India–EU FTA
The timing is what makes Goyal's remarks matter. India and the EU finished negotiating their free trade agreement on 27 January 2026. On 11 September 2026 the European Commission asked the EU Council to authorise signing it (EcoNiti). Reports point to signing around December 2026 and entry into force in early 2027 (Conventus Law; Mondaq).
Before that happens, the deal still needs:
- EU Council authorisation and European Parliament consent;
- Union Cabinet and Parliamentary approval in India.
As of 24 October 2026 the FTA is not signed, and we found no Council decision. An FTA lowers tariffs, but CBAM sits outside normal customs duties. So Indian steel could get better tariff access under the FTA and still pay a carbon charge at the border. That gap is why New Delhi keeps raising CBAM in public, even while it pushes to get the deal signed.
Goyal had already met EU Trade Commissioner Maroš Šefčovič about the FTA at the G20 Trade Ministers' Meeting in Milwaukee around 1 October 2026 (ANI). On India's other big negotiation, the India–US interim deal, he said around 10 October that "changed circumstances" will shape the final pact (Business Standard). That deal isn't finalised either. For how trade and global headwinds feed into India's growth outlook, see our explainer on the IMF's India GDP forecast.
Piyush Goyal's Germany and Netherlands visit: the full itinerary
The Berlin speech was one stop on a trade trip with about 100 Indian businesses and startups (Devdiscourse; Channel IAM).
| Date (2026) | Where | What |
|---|---|---|
| 22 October | Berlin | Met German Economy Minister Katherina Reiche about how the India–EU FTA could deepen industrial ties; co-chaired an India–Germany Business Roundtable with DGAP and the Asia-Pacific Committee of German Business; opened an India Centre at DGAP; met executives from Bayer, Knauf and Fresenius |
| 23 October | Berlin | Spoke at the Berlin Global Dialogue; met the Indian diaspora |
| 24–27 October | The Hague | Planned meetings with the Dutch ministers for Economic Affairs & Climate and for Foreign Trade & Development Cooperation |
| 25 October | Rotterdam | Planned visit to the Port of Rotterdam |
| 26 October | The Hague | Planned India–Netherlands Business Forum |
The Berlin programme also included an India–Germany Investment Roundtable with Germany Trade & Invest, plus sector sessions on autos, AI, energy, pharma and textiles (The Statesman; BW Businessworld). The Netherlands stops hadn't happened when we wrote this on 24 October 2026, so there are no outcomes to report yet.
What Indian exporters should watch next
- EU Council decision on signing the FTA. This is the next formal step. Watch the Council's press releases.
- Any CBAM language from India–EU talks. We found no report of a CBAM carve-out for India. Treat claims of one with caution until an official text appears.
- Your buyer's data requests. If you export steel or aluminium products to the EU, expect your importer to ask for plant-level emissions data. Getting verified numbers ready is usually cheaper than paying on default values.
- Official statements. Check the Commerce Ministry, PIB and Goyal's office on X for the official wording.
Who is Piyush Goyal? Quick profile
- Born: 13 June 1964, Mumbai (age 62).
- Party and post: BJP; Union Minister of Commerce & Industry since 2019, the longest-serving person in the job (Commerce Ministry bio).
- Constituency: Lok Sabha MP for Mumbai North since 2024, his first direct election. He won by 357,608 votes over Congress's Bhushan Patil.
- Earlier: Rajya Sabha member from 2010 to 2024 and Leader of the House there.
- Background: chartered accountant, law graduate and former investment banker. His father, Vedprakash Goyal, was Union Shipping Minister. His mother, Chandrakanta Goyal, was a three-time Maharashtra MLA (Wikipedia).
A note on the "cockroach" video: A clip that went viral in July 2026, claiming he called for "hanging cockroaches", is a deepfake. PIB Fact Check and AltNews found it fake, and he filed a police complaint (Tribune). It has nothing to do with his October 2026 Europe trip or Berlin remarks.
For more breakout explainers on money, rules and policy, browse the KyunTrend homepage. If you're following market reactions to trade news, our piece on why the Indian stock market is falling covers the wider picture.
Sources
- Ministry of Commerce & Industry: Piyush Goyal bio
- Newsgram: Berlin climate remarks
- Channel IAM: trip details
- Devdiscourse: 100-business delegation
- EcoNiti: FTA forwarded to Council
- Conventus Law: FTA timeline
- ANI: G20 Milwaukee and EU FTA review
- AltNews: deepfake fact check
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