New Delhi, Sept. 8 -- The UK has recognised India's Carbon Credit Trading Scheme (CCTS) as a qualifying carbon pricing mechanism for relief under its Carbon Border Adjustment Mechanism (CBAM), a move expected to lower the effective carbon tax burden on Indian exporters.

HM Treasury has included the CCTS in its indicative list of overseas carbon pricing schemes eligible for pricing relief under the Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations, 2026, PTI reported, citing an official.

The recognition follows sustained technical-level discussions between India and the UK, with the Commerce Ministry pursuing the issue with British authorities.

Under the arrangement, UK im...