The Indian Carbon Credit Trading System (CCTS) has been recognized by the United Kingdom as a qualifying criterion for price reduction under the UK Government's Carbon Boundary Regulation Mechanism (CBAM), which will reduce the tax burden on Indian exports to the country, an Indian government spokesman said on Wednesday, September 9, citing a message received from the UK Ministry of Finance..
The official said that the UK, in a message from the Ministry of Finance sent to the Bureau of Energy Efficiency of India (BEE), states that CCTS has been included in the UK-published indicative list of foreign carbon pricing schemes, which are evaluated as qualification criteria in in accordance with the provisions of the Carbon Boundary Adjustment Mechanism (calculation of the CBAM rate and determination of carbon price reductions) in 2026..
The Indian government has notified CCTS of this in order to reduce, eliminate, or eliminate greenhouse gas emissions by setting prices for such emissions through carbon credit certificate trading.
Financial support for the implementation of CCTS will be provided by BEE through fees charged to organizations under the scheme and its own resources.
The UK government's recognition of CCTS will mean that British importers of Indian goods subject to CBAM will be able, according to the official, to achieve carbon price reductions corresponding to the actual carbon price charged on these goods under CCTS, subject to compliance with the evidence and verification requirements under UK law.
This would reduce CBAM's current liability in relation to Indian goods, which would directly benefit Indian exporters to the UK, he added. он.
This recognition was the result of constant cooperation at the technical level between the governments of the two countries in the development and implementation of CCTS, he said он.
Cooperation in the development and implementation of the carbon market will continue within the framework of the Memorandum of Understanding between the UK and India in the field of energy and the Partnership for Market Introduction, the official said.
Cooperation in the field The governments of the two countries are also committed to continuing the dialogue on carbon pricing, including the interaction between CCTS and the British CBAM regulations, which will further strengthen India-UK relations. the engagement, he added.
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