India and the EU met to keep working on how the Carbon Border Adjustment Mechanism will treat India's domestic carbon market. The Indian side shared progress under the Carbon Credit Trading Scheme, including emission intensity reduction targets for 490 industrial units. The EU side gave an update on CBAM implementation. Both want to continue technical talks on recognizing carbon pricing, MRV systems, and capacity building. For Indian exporters of steel and aluminium, the stakes are concrete. One estimate says they may need to cut prices by 15 to 22 percent to stay competitive in Europe, and smaller firms face the highest reporting costs. The talks also highlighted India's power sector shift, with non-fossil sources at 308 GW out of 558 GW of installed capacity, though the grid still carries a significant coal share. The key question going forward is whether the EU will accept India's carbon price as equivalent. If the domestic price stays low, CBAM will likely add a levy on top.
