U.K. recognises India's carbon credit scheme under its carbon tax mechanism: official
· Business · The Hindu, LiveMint, Moneycontrol
The United Kingdom has officially recognised India’s Carbon Credit Trading Scheme (CCTS) as a qualifying criterion under its Carbon Border Adjustment Mechanism (CBAM), allowing importers of eligible Indian goods to seek carbon price relief. This decision, confirmed by the UK’s HM Treasury in a communication to India’s Bureau of Energy Efficiency, reduces the CBAM liability for Indian exporters, directly easing their tax burden. The move follows years of technical engagement between the two governments and aligns with India’s broader push to price greenhouse gas emissions through the CCTS. Financial support for the CCTS will come from fees and charges collected from participating entities. The recognition comes into effect under the UK’s CBAM regulations, subject to evidence and verification requirements under British law.
Why it matters
Indian exporters, particularly those in sectors covered under CBAM, will benefit from lower carbon tax liabilities, making their goods more competitive in the UK market. This recognition strengthens India’s position in global carbon pricing mechanisms and supports its climate goals while boosting trade ties with the UK.
Read the original report — The Hindu
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