India has officially submitted applications for its domestic verification bodies under the European Union’s Carbon Border Adjustment Mechanism (CBAM). This proactive step aims to ensure Indian exporters can comply with the new carbon import levy and protect key exports to the EU.
January 1, 2026
CBAM Financial Phase Start
⏳ Time Machine
How today’s news fits into the bigger picture
December 2019
European Green Deal Proposed
The European Union unveiled its ambitious European Green Deal, a package of policy initiatives aiming to make Europe climate-neutral by 2050, which included the conceptualization of a Carbon Border Adjustment Mechanism (CBAM).
March 2021
CBAM Formal Proposal
The European Commission formally proposed the CBAM, initiating the legislative process for this new carbon import levy. This proposal outlined the scope and operational details of the mechanism.
October 1, 2023
CBAM Transitional Phase Begins
The CBAM entered its transitional phase, requiring importers of certain goods into the EU to report their embedded greenhouse gas emissions without any financial adjustments or duties being levied at this stage.
Early 2026
India Expresses Concerns
India reiterated its concerns at various international forums, including the WTO, arguing that CBAM could be discriminatory and unfairly impact its carbon-intensive exports like steel, aluminum, and cement, advocating for differentiated responsibilities.
January 1, 2026
CBAM Financial Phase Effective
The financial phase of CBAM became effective, meaning actual carbon costs are now being levied on imports of specified goods into the European Union, making compliance and accurate reporting critical for exporters.
Today
India filed applications for its domestic verification bodies under the EU’s Carbon Border Adjustment Mechanism (CBAM) to protect its exports.
What happens next?
The EU will review and approve these bodies, which will then help Indian exporters accurately report emissions and avoid higher tariffs, maintaining competitiveness.
India has taken a crucial step to safeguard its exports from the European Union's Carbon Border Adjustment Mechanism (CBAM) by filing applications for its domestic verification bodies. The CBAM is a carbon import levy that requires importers to report and eventually pay for the embedded emissions in certain carbon-intensive goods. By establishing certified verification bodies, India aims to provide a credible framework for its exporters to accurately measure and report their emissions, which is essential to avoid higher tariffs and remain competitive in the vital EU market. This move underscores India's commitment to protecting its trade interests in the face of evolving global environmental regulations.
💭 If you're wondering…
CBAM primarily targets carbon-intensive goods such as cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen, requiring importers to declare and pay for their embedded carbon emissions.
Did this story help?
Official sources
Knowledge Chain — tap a concept