Industry Odisha Bureau,Oct 13: India and the EU reviewed carbon pricing, emissions verification and CBAM in New Delhi. Both sides agreed to deepen technical cooperation as India builds its domestic carbon market.
India and the European Commission held technical talks on carbon pricing on Monday. Power Secretary Pankaj Agarwal met Gerassimos Thomas in New Delhi on October 12. Thomas is the Commission’s Director-General for Taxation and Customs Union.
The talks centred on the EU’s Carbon Border Adjustment Mechanism, or CBAM. Both sides discussed recognising carbon pricing mechanisms and emissions verification systems. The Ministry of Power disclosed the meeting in an official release. The engagement marks continued cooperation, not a finalised regulatory agreement.
CBAM puts a carbon cost on certain carbon-intensive goods entering the EU. It mirrors the price European producers pay under the EU Emissions Trading System. The aim is to prevent carbon leakage to countries with weaker climate rules.
Steel, aluminium, cement and fertiliser exporters are among the sectors most exposed. Importers must account for emissions embedded in these products. Accurate emissions data could shape the cost of Indian goods in Europe. Recognition of carbon prices already paid at home could also matter.
Monitoring, reporting and verification systems, known as MRV, formed a second focus. Such systems track industrial activity, calculate greenhouse gas output and check claimed cuts. Without them, carbon credits and compliance reports carry little credibility.
Differences in accounting methods can complicate trade compliance across borders. An Indian steelmaker’s emissions figure may not match a European calculation. Technical cooperation could help narrow such gaps over time. India and the EU have yet to adopt common verification standards.
Agarwal also outlined India’s progress under its Carbon Credit Trading Scheme, or CCTS. The government has notified emission intensity reduction targets for 490 industrial units. The figures reflect notified goals, not cuts already delivered.
Intensity targets limit emissions per unit of output rather than total emissions. Units beating targets can earn credits, while laggards may need to buy them. This rewards energy efficiency and cleaner production technology.
India is still building out its domestic carbon market. A credible market needs transparent reporting, robust certification and consistent regulation. Strong oversight would support investor confidence and market integrity.
The Power Secretary pointed to India’s expanding non-fossil electricity capacity. Non-fossil sources account for 308 GW of the country’s 558 GW installed capacity. That equals roughly 55.2% of total installed generation capacity.
Installed capacity, however, differs from actual electricity generation. Solar and wind output varies with weather and time of day. Even so, a cleaner grid can help lower the carbon footprint of industrial production.
According to the ministry, the EU delegation welcomed India’s carbon market progress. European officials also shared updates on CBAM implementation. Such praise does not amount to regulatory equivalence or mutual recognition.
For Indian manufacturers, the commercial stakes extend beyond diplomacy. Exporters may face higher costs for emissions measurement and third-party verification. Gaps between domestic and European carbon prices could also influence competitiveness.
Both sides agreed to strengthen cooperation and continue technical talks on carbon markets. CBAM-related methodologies will also remain on the agenda. Continued dialogue does not guarantee regulatory convergence. Much will depend on implementation, regulatory clarity and reliable emissions data.
