New Delhi, July 3 (IANS) India must strengthen domestic carbon markets and green finance and help micro, small and medium enterprises meet compliance costs as the European Union’s Carbon Border Adjustment Mechanism (CBAM) reshapes export competitiveness, industry experts said on Friday.

An event organised by the PHD Chamber of Commerce and Industry (PHDCCI), here drawing senior government officials, industry leaders and experts to discuss CBAM readiness and industrial decarbonisation.

Experts informed that the government is actively engaging with the European Union and the United Kingdom to secure recognition of India’s Carbon Credit Trading Scheme (CCTS), facilitate acceptance of Indian accredited carbon verification agencies for CBAM compliance, and explore comparative benchmarking mechanisms that better reflect India’s energy profile.

Dr Jatinder Singh, Deputy Secretary General, PHDCCI, said that the European Union’s CBAM has made carbon competitiveness a permanent determinant of global market access. He highlighted that the EU, India’s third-largest trading partner with bilateral goods trade of nearly €118 billion, is a key destination for Indian exports in sectors such as iron & steel, aluminium, cement and fertilisers.

India’s steel and aluminium exports to Europe have already witnessed pressure, signalling the urgency for industry to strengthen emissions monitoring and carbon reporting systems, he noted.

MSMEs require urgent support through technology adoption, affordable verification infrastructure, cleaner energy access and simplified reporting mechanisms.

He further called for strengthening India’s carbon pricing framework, accelerating industrial decarbonisation and building robust institutional capacity for Measurement, Reporting and Verification (MRV) to ensure India’s long-term competitiveness in global trade.

Satyaki Rastogi, Chief General Manager, SIDBI stressed the need for coordinated policy interventions, common testing and certification facilities, awareness and capacity-building programmes, and affordable financing solutions to facilitate the transition.

Saurabh Diddi, Director, Bureau of Energy Efficiency (BEE), Ministry of Power, announced that draft compliance targets for the steel sector under the CCTS have been released for public consultation, while trading under the Indian Carbon Market is expected to commence by October 2026, creating a domestic ecosystem to support industrial decarbonisation and reduce compliance costs.

—IANS

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