Current Affairs - International - Discussion

The United Kingdom officially recognised India’s Carbon Credit Trading Scheme (CCTS) on September 8, 2026. This recognition is intended to help Indian exporters avoid double taxation under the UK’s upcoming Carbon Border Adjustment Mechanism (CBAM), scheduled to begin on January 1, 2027. The mechanism will apply to carbon emissions embodied in imports such as aluminium, cement, fertiliser, hydrogen, iron and steel. British importers of Indian goods can seek carbon price relief based on the effective carbon price already paid under India’s CCTS. The CCTS operates under the Energy Conservation Act, 2001, with the Bureau of Energy Efficiency (BEE) serving as its nodal implementation agency.