{
  "id": 3939259,
  "title": "CII: Carbon pricing vital for EU CBAM",
  "url": "https://urgent.news/2026/08/28/cii-carbon-pricing-vital-for-eu-cbam",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-28T09:27:15.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/renewables/carbon-pricing-emissions-tracking-key-to-protect-indias-exports-under-eu-cbam-cii-report/articleshow/133588125.cms"
  },
  "original_language": "en",
  "account": "A joint report by the Confederation of Indian Industry (CII) and IIM Ahmedabad emphasizes the importance of strengthening carbon pricing and emissions tracking systems in India to combat the EU's upcoming Carbon Border Adjustment Mechanism (CBAM). This mechanism will commence in its definitive phase on January 1, 2026, requiring exporters of carbon-intensive goods to account for the embedded emissions in their products. The report highlights that a credible domestic carbon-pricing system, coupled with robust measurement, reporting, and verification (MRV) mechanisms, is crucial for Indian industries that export carbon-intensive products to the European market to maintain their competitiveness.\n\nA well-designed domestic registry, combined with robust MRV and a transparent carbon-pricing layer, is essential for generating an auditable, entity-level record of carbon costs paid. This ensures that Indian exporters can claim valid deductions, protecting their international competitiveness. The sectors most affected by the increasing carbon price signal include steel, cement, aluminium, fertilizers, refining, and petrochemicals. Under CBAM rules, exporters must prove that the carbon price they paid is effectively paid and adequately evidenced, including accounting for any free allocations or rebates.\n\nIndia's carbon market needs stringent measurement and verification standards, with facility-level emissions data independently verified to ensure that each Carbon Credit Certificate represents a genuine and permanent reduction in emissions. Additionally, India should establish transparent and progressively stringent emissions-intensity targets for the affected sectors. If targets are too lenient, it may lead to an oversupply of carbon certificates, lowering prices and diminishing incentives for industries to reduce emissions.\n\nThe report recommends maintaining an emissions-intensity-based baseline-and-credit approach instead of immediately imposing an absolute cap on emissions. This framework allows industrial production to expand while imposing an economic penalty on weaker emissions performance and rewarding superior carbon efficiency. By building an integrated sustainability framework that links sustainability definitions, corporate reporting, carbon pricing, financing, and implementation, India can effectively navigate the challenges posed by the EU's CBAM.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}