India has questioned Western nations for imposing climate-related trade barriers on developing economies despite Europe’s historical contribution to the climate crisis the world is facing now.

Wealthy countries built their economies using fossil fuels but are now imposing additional costs on poorer nations, Indian Commerce and Industry Minister Piyush Goyal told the Berlin Global Dialogue on Thursday.

“Who’s responsible for this mess in the first place?” Goyal asked, referring to the West’s carbon emissions, and challenged the European Union’s environmental trade restrictions.

India accounts for around 17% of the world’s population but has significantly lower per capita emissions than Europe, Goyal pointed out.

The minister questioned the $100 billion annual climate finance commitment made by wealthy countries to help developing economies address climate change. The target, first agreed upon during UN climate negotiations in 2009, was extended through 2025 under the Paris climate process.

📹 ‘Who’s Responsible For This Mess?’ Piyush Goyal Gives Europe A Climate History Lesson Goyal reminded Europe that it built its economies on cheap coal, questioning its climate demands on India despite the country having “one of the fastest growing clean energy program.” https://t.co/ji6ShNq0BH

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“Eleven years later, we haven’t seen a nickel or dime of that. It’s all promises,” Goyal said.

He argued that the EU’s Carbon Border Adjustment Mechanism (CBAM) fails to recognize the principle of common but differentiated responsibilities, under which developed countries are expected to shoulder a greater burden in addressing climate change.

The mechanism places carbon-related costs on imports of steel and other emissions-intensive products. Brussels has justified it by saying it ensures imported goods face carbon costs comparable to those paid by European manufacturers.

India’s concerns echo a position adopted by BRICS leaders at their September summit in New Delhi. The declaration opposed unilateral and discriminatory carbon border measures that could undermine developing countries’ efforts to address climate change.

Goyal warned that the EU’s 50% duty on steel imports exceeding specified quotas could raise costs for European industries and consumers.

The restrictions have implications for India, which sent nearly 40% of its steel exports to the EU last year, according to government think tank NITI Aayog.

India’s trade agreement with the EU, concluded in January, does not exempt Indian exporters from the bloc’s carbon levy, Reuters reported. The agreement is expected to be signed by the end of this year and could take effect in early 2027, Goyal said.