Engineering goods exporters seek mandate on carbon emission certificate under EU norms
Engineering exporters have urged the government to mandate accredited carbon-emission data from raw-material suppliers, warning that small exporters could struggle to meet EU requirements under the Carbon Border Adjustment Mechanism (CBAM). About 70% of India’s engineering exports to the EU come from MSMEs.
New Delhi: Engineering goods exporters are seeking government approval on carbon emission certificates, as they face difficulties exporting to the EU without the necessary accreditation. The European Union's Carbon Border Adjustment Mechanism (CBAM) requires importers to submit annual declarations based on either actual verified emissions data or default emissions values.
However, raw material importers are struggling to provide accredited carbon emission data, making it impossible for exporters to obtain test certificates. Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC), emphasized that 70% of engineering exports to the EU are from small and medium enterprises (MSMEs) which necessitate accredited data for carbon emission certificates.
Chadha highlighted that the proposed Lindsey Graham tariff bill, which targets countries importing Russian oil with up to 100% tariffs, is the most significant concern for trade with the US. In the first quarter of fiscal year 2027 (FY27), engineering goods exports to the US increased by 12% to $7.7 billion, with iron and steel exports growing by 103%. Chadha suggested that trade agreements with Mexico and Canada could mitigate supply chain risks.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
