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ARTICLE · 05 OCTOBER 2026

The UK Recognises India's Carbon Credit Trading Scheme Under CBAM: A Positive Step Forwards

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His Majesty's Treasury (HM Treasury) of the United Kingdom (UK) has formally recognised India's Carbon Credit Trading Scheme (CCTS) as a qualifying carbon pricing mechanism under the United Kingdom's Carbon Border Adjustment Mechanism (CBAM).

IndiaEnvironment
Vanita Bhargava
Vanita Bhargava
Vishal Shrivastava
Vishal Shrivastava
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Introduction

His Majesty's Treasury (HM Treasury) of the United Kingdom (UK) has formally recognised India's Carbon Credit Trading Scheme (CCTS) as a qualifying carbon pricing mechanism under the United Kingdom's Carbon Border Adjustment Mechanism (CBAM). The recognition was communicated to the Bureau of Energy Efficiency (BEE), under the Ministry of Power, confirming that the CCTS has been added to the UK's indicative list of overseas carbon pricing schemes meeting the qualifying criteria under the Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations, 2026 (2026 Regulations).

For Indian industry, this is more than a technical regulatory development. It is the first time a major trading partner has considered the Indian Carbon Market sufficiently reliable for recognition under its CBAM. This vote of confidence, coming barely a year after the CCTS was notified, carries significance both for exporters facing immediate CBAM

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