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UK recognises India's carbon credit trading scheme
The Hindu··8 Sept
The United Kingdom has recognised India's Carbon Credit Trading Scheme for carbon price relief under its carbon border adjustment mechanism, an official said Monday. HM Treasury confirmed the inclusion in a communication to India's Bureau of Energy Efficiency. UK importers of eligible Indian CBAM goods can seek relief matching the carbon price borne under the CCTS.
Prism
What It Means For You
- Indian exporters to the UK can seek lower CBAM liability on eligible goods with proper documentation.
- The recognition follows technical engagement between the two governments on CCTS design.
- The Commerce Ministry had pursued the matter with the UK for an extended period.
What's Happening
- India notified the CCTS to price greenhouse gas emissions through carbon credit trading.
- The UK included the scheme in its indicative list of overseas carbon pricing mechanisms.
- The official said the move would directly benefit Indian exporters to the UK.
How CBAM Relief Works
- CBAM applies to imports of certain goods based on embedded carbon emissions.
- Relief corresponds to the effective carbon price already paid under a recognised scheme.
- Implementation costs for CCTS are met from fees collected from covered entities.
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