India Enables Local Verification to Prepare Exporters for EU Carbon Tax
A key transition is underway in trade between India and the European Union as Indian verifiers gained access to the EU registry in September 2026 to streamline EU CBAM compliance. This step allows local auditors to begin assessing emissions data for domestic exporters of carbon-intensive goods. While mandatory filing of returns for Indian exporters will start in September 2027, early registry access gives local industries time to establish proper verification routines.
Ministry Sets Up Dedicated Task Force
To help domestic companies handle the new requirements, India’s Ministry of Commerce and Industry formed the Committee on Export Preparedness for EU CBAM. Chaired by Additional Secretary Darpan Jain from the Department of Commerce, the committee includes representatives from key government departments, regulatory authorities, and industry bodies. The group is running training sessions and business awareness events to teach manufacturers how to measure embedded carbon in sectors like fertilisers, iron, steel, aluminium, and cement.
Efforts to Approve Local Auditing Bodies
To lower costs for exporters, the Indian government is working to allow local verification instead of relying on foreign auditing teams.
India's Commerce and Industry Minister Piyush Goyal wrote to the EU Commissioner for Trade and Economic Security, seeking official recognition for the National Accreditation Board for Certification Bodies (NABCB).
A number of Indian auditing agencies have already submitted applications directly to EU authorities. Approval would allow local teams to conduct required site audits within India.
Impact on Key Export Sectors
Shifted buying habits are already hitting trade numbers as European buyers prepare for upcoming carbon costs. Combined steel and aluminium exports fell 24.4% year-on-year, dropping from $7.71 billion in FY24 to $5.82 billion in FY25. Finished iron and steel shipments took the biggest hit, plunging 35.1% from $4.70 billion to $3.05 billion over the same period. Aluminium exports also dipped 10%, slipping from $3.01 billion to $2.77 billion.
Agreements with the United Kingdom
India has secured similar arrangements with other European trading partners.
Ahead of the UK's carbon border tax rollout on 1 January 2027, British authorities officially recognized India's accreditation body, the NABCB. The UK has also agreed to accept carbon payments made under India's Carbon Credit Trading Scheme (CCTS), allowing exporters to deduct domestic carbon payments against their import liabilities in Great Britain.
Addressing Costs and Support Measures
While operational frameworks are being set up, Indian leadership continues to discuss the impact of climate trade policies. India’s Finance Minister Nirmala Sitharaman noted that unilateral carbon tariffs can act as trade barriers, adding that global climate rules should support developing nations in their energy transition. To assist local industries, India’s national budget set aside USD 2.2 billion to develop carbon capture, utilisation, and storage (CCUS) technologies across energy-intensive sectors like steel and cement.
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