India is advised to enhance its domestic carbon markets and green finance to assist micro, small, and medium enterprises in meeting compliance costs due to the European Union’s Carbon Border Adjustment Mechanism (CBAM) affecting export competitiveness. At an event organized by the PHD Chamber of Commerce and Industry (PHDCCI), experts emphasized the necessity for India to engage with the EU and the UK to secure recognition of its Carbon Credit Trading Scheme (CCTS) and explore benchmarking mechanisms reflecting India’s energy profile for CBAM compliance.
Dr. Jatinder Singh from PHDCCI highlighted the significance of the EU’s CBAM in determining global market access based on carbon competitiveness. With the EU being India’s third-largest trading partner, industries like steel, aluminum, cement, and fertilizers face pressure on exports to Europe, necessitating improved emissions monitoring and carbon reporting systems.
The urgency to support MSMEs through technology adoption, cleaner energy access, and simplified reporting mechanisms was stressed, along with the call to strengthen India’s carbon pricing framework and accelerate industrial decarbonization for long-term global trade competitiveness. Satyaki Rastogi from SIDBI emphasized the need for coordinated policy interventions, capacity-building programs, and affordable financing solutions to facilitate the transition towards decarbonization.
Saurabh Diddi from the Bureau of Energy Efficiency (BEE) announced the release of draft compliance targets for the steel sector under CCTS for public consultation. Trading under the Indian Carbon Market is set to begin by October 2026, aiming to create a supportive ecosystem for industrial decarbonization and cost reduction.
