New Delhi, May 8 (KNN) India has asked the European Union to recognise its Carbon Credit Trading Scheme (CCTS) owing the scrutiny its key industry will face under the bloc’s Carbon Border Adjustment Mechanism (CBAM) which will kick in from October. 

To discuss the matter, top officials of various ministries including finance, commerce and industry, steel and MSME and industry representatives will hold a key meeting on May 9, reported ET. 

Non-EU steel producers must report direct and indirect emissions under the proposed EU tax drill.

From January 1, 2026 the mechanism will translate into a 20-35 per cent tax on select imports into the EU.

From that date, EU importers will have to declare and purchase CBAM certificates to cover the emissions associated with producing imported steel products.

“We are talking to the EU to recognise our certificates. Discussions are on,” an official told ET.

The government issues Carbon Credit Certificates - each representing reduction or removal of one tonne of carbon dioxide equivalent - to registered entities based on their initiatives to reduce carbon footprint.

CCTS aims to set up a framework for Indian carbon market. The scheme is yet to be given a final shape.

“Our scheme is being prepared,” the official said. “We will have to discuss issues related to equivalence and pricing of carbon, and the processes to recognise these systems,” the official added.  (KNN Bureau)