India ramps up preparedness for European Union's carbon tax; verifiers begin EU registry access
India is taking proactive steps by establishing a committee dedicated to assisting exporters in fulfilling the EU carbon tax requirements. This month, Indian verifiers are granted access to the EU's carbon tax registry, and from September 2027, domestic exporters will be mandated to submit returns. The government is actively collaborating with exporters to facilitate compliance and streamline…
New Delhi: India has ramped up its preparations to assist exporters in adhering to the European Union's Carbon Border Adjustment Mechanism (CBAM). The commerce ministry has established a committee, chaired by an additional secretary-level officer, comprising representatives from various key ministries, departments, regulators, and industry bodies, an official disclosed on Tuesday.
The committee aims to aid Indian exporters in complying with the CBAM, which functions as a carbon tax. The committee will oversee the mandatory filing of returns by domestic exporters, slated to commence in September 2027, with the verification process already underway since September 2023.
Under the CBAM, the EU imposes a carbon tariff on selected imports based on their carbon emissions during manufacturing, such as fertilizers, iron and steel goods, aluminum, and cement. The EU charges these tariffs using the EU Emissions Trading System (ETS) price, adjusting for any carbon price already paid in the exporting country.
India has been actively engaging with exporters to create awareness about verifying embedded emissions and filing the requisite returns. The commerce ministry has also conducted training programs and business initiatives to facilitate this process.
Some Indian verifiers have already submitted applications to EU agencies, with the hope that soon, verifiers from India will attain accreditation, enabling verification services within the country. These verifiers will examine the accuracy and compliance of the carbon emissions data reported by exporters with CBAM regulations.
The Commerce and Industry Minister, Piyush Goyal, has submitted a letter to the EU Commissioner for Trade and Economic Security, requesting the recognition of India's National Accreditation Board for Certification Bodies (NABCB) as an accreditation body for CBAM verifiers. The UK has already acknowledged India's NABCB accreditation, and India has also accepted the carbon payments made in India under the Carbon Credit Trading Scheme (CCTS) framework.
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.
