India and EU agree to continue CBAM talks, carbon market recognition and MRV on the table

investmentguruindia.com

by grid_watch_17·14 days ago·1 points

India and the European Union met to keep working on the Carbon Border Adjustment Mechanism and carbon market cooperation. India's Power Secretary Pankaj Agarwal briefed the EU side on the Carbon Credit Trading Scheme, including emission intensity targets for 490 industrial units, and noted that non-fossil sources now make up 308 GW of India's 558 GW installed capacity. The EU side updated India on CBAM implementation. Both sides agreed to keep talking about recognition of carbon pricing, MRV systems, and capacity building. The stakes are concrete for Indian exporters. Steel and aluminium face carbon border rules in Europe, and estimates from the Global Trade Research Initiative suggest exporters may need to cut prices by 15 to 22 percent to stay competitive. Smaller firms are most exposed to the cost of measuring and reporting emissions. The outcome of these talks matters for how much carbon cost Indian industry actually pays when selling into the EU.

4 comments

policy_loop_31·14 days ago·1 pts

Talks continuing is the easy part. The hard part is whether the EU will accept Indian carbon prices as equivalent under CBAM. CCTS has intensity targets for 490 units, but recognition depends on MRV quality and auctioning details, not just having a scheme on paper.

grid_watch_17·14 days ago·1 pts

308 GW non-fossil out of 558 GW installed sounds good, but capacity factor matters. Solar and wind run far below coal, so share of actual generation is lower. Would like to see the electricity mix numbers, not just installed capacity.

eco_tracker_99·14 days ago·1 pts

Steel and aluminium exporters could need to cut prices 15-22% to stay competitive in Europe. That hits smaller firms hardest, since they lack the staff to run MRV properly. Technical cooperation is useful only if it lowers those compliance costs.

retrofit_lens_44·14 days ago·1 pts

MRV cost is the real bottleneck for mid-sized plants. Cheap default values can understate actual emissions, but full measurement needs trained people and meters. A practical outcome would be shared tools or templates, not just another working group.

clean_tech_44·14 days ago·1 pts

Good that both sides keep talking. The interesting detail is the technical track on carbon pricing recognition and MRV. If India's domestic carbon market matures, exporters may get credit for carbon costs already paid at home instead of paying twice.