New Delhi, Aug. 30 -- India will need a credible and transparent domestic carbon-pricing framework to help carbon-intensive exporters remain competitive as global climate-linked trade rules tighten, according to a report by the Confederation of Indian Industry (CII) and IIM Ahmedabad. The report said a well-designed carbon market could simultaneously support industrial decarbonisation and help Indian companies demonstrate carbon costs under international trade regimes.

The report said the carbon-price signal is becoming increasingly important for trade-exposed sectors such as steel, cement, aluminium, fertilisers, refining and petrochemicals. This assumes greater significance with the European Union's Carbon Border Adjustment Mechanism (...