India's Carbon Credit Scheme Recognized by UK CBAM: Impact on Exporters
economictimes.indiatimes.comBritain has recognized India's Carbon Credit Trading Scheme (CCTS) as a qualifying carbon pricing mechanism under its Carbon Border Adjustment Mechanism (CBAM). Indian exporters of aluminium, steel, cement, and fertilisers can now deduct CCTS compliance costs from the UK border levy. However, the recognition is not an exemption, and with an anticipated CCTS price of $10 per tonne, the immediate relief is modest. The move lends international credibility to India's carbon market, but the article notes that hydrogen exporters, included in CBAM but not CCTS, get no relief. The recognition also leaves questions about CBAM revenue equity and future equivalence with other mechanisms unresolved. It highlights the value of technical engagement but stops short of a broader breakthrough.
