New Delhi, Sept. 11 -- On 10 June, the European Commission closed the consultation feedback window on a crucial question about how the EU Carbon Border Adjustment Mechanism (CBAM) will operate. This was probably the single most important question about CBAM: how much will exporters be able to deduct from the tariff for carbon prices already paid at home under measures like India's Carbon Credit Trading Scheme (CCTS)?

The CBAM Regulation was adopted into European law in May 2023, but many key details remained to be specified in later implementing rules. Those details include the exact criteria for determining which types of domestic carbon payments made in third countries will or will not qualify as deductible under Article 9 of CBAM.

Th...