India is pushing for recognition of its verification agencies and carbon-pricing system under the EU’s Carbon Border Adjustment Mechanism, commerce ministry officials have said. Officials said both sides have agreed that each will recognise the other’s verification processes, removal procedures and competent agencies.
Work has already begun and has not waited for a free-trade agreement. Three meetings have been held with the EU. The bloc has opened applications from third-country verification bodies; Indian applications have been filed and New Delhi is pressing for faster approval.
“We have identified competent authorities and are working with the Bureau of Energy Efficiency on India’s carbon-credit trading system,” an official said. “The aim is that Indian exporters can have their facilities verified at home so that verified data can be submitted to Europe.” Officials reported a positive response from the EU side. Separate talks on recognition of India’s carbon price and related instruments took place as recently as yesterday.
The package also includes capacity-building, technical help and financial assistance. Officials described three pillars: recognition of carbon prices, recognition of verification bodies, and financial assistance, plus most-favoured-nation treatment of any future concessions.
They said Indian industry is not lagging in reporting or in cutting emissions; emissions “are not that high” and firms are working both to lower them and to ensure imported goods are verified. On steel, officials confirmed that a conservative estimate of 25 million tonnes of exports already factors in CBAM costs. Parallel discussions are under way with the United Kingdom, whose carbon tax takes effect on 1 January; recognition of Indian verifiers and certified bodies has been agreed.
On ship recycling, officials said India is the world’s largest ship-breaking nation, with more than 30 per cent of the market. The EU had not previously recognised yards outside Europe. “In their draft regulation they have now listed two Indian establishments,” an official said. The Ministry of Ports, Shipping and Waterways and the Department of Commerce have jointly pursued the issue.
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The development comes as the India-EU FTA is expected to be signed in December. Dubbed the "mother of all trade agreements", the trade deal was announced in January and will interlink India-EU markets, with the lowering of tariffs and other concessions at a time of trade wars.
