New Delhi, Sept. 7 -- In a major breakthrough, the UK has recognised India's Carbon Credit Trading Scheme as a qualifying criterion for pricing relief under its carbon border adjustment mechanism (CBAM), a move that would reduce the tax burden on domestic exporters, an official said on Monday.
In a communication addressed to the Bureau of Energy Efficiency, Ministry of Power, the UK's HM Treasury confirmed that the CCTS has been included in the UK's published indicative list of overseas carbon pricing schemes assessed as qualifying criteria under a provision of the Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026, the official said.
The move is important as the commerce ministry was pursuing the matter with the UK for long.
The Carbon Credit Trading Scheme (CCTS) has been notified by India with the objective of reducing, removing, or avoiding greenhouse gas emissions from the Indian economy by pricing such emissions through the trading of Carbon Credit Certificates.
Published by HT Digital Content Services with permission from Millennium Post.