Overview
- On Monday, September 7, 2026, the UK formally added India’s Carbon Credit Trading Scheme (CCTS) to its list of qualifying carbon pricing systems for the UK Carbon Border Adjustment Mechanism (CBAM).
- British importers of covered Indian goods will be able to seek carbon-price relief that reduces CBAM liabilities, but the relief equals only the effective carbon price actually paid on the goods and must meet UK evidence and verification rules.
- The relief applies only to imports listed under the UK CBAM, such as aluminium, cement, fertiliser, hydrogen, and iron and steel, so benefits will be limited to those sectors and shipments with verifiable emissions pricing.
- Officials said the recognition follows sustained technical negotiations and that further cooperation on carbon-market design and implementation will continue through a UK–India Energy memorandum and the Partnership for Market Implementation.
- The UK already accepts 16 outside schemes, the UK CBAM starts January 1, 2027, and this move is meant to avoid double taxation, which could ease costs for some Indian exporters and change import pricing for UK buyers.