UK Recognises India’s Carbon Credit Scheme

The UK has officially recognised India’s Carbon Credit Trading Scheme (CCTS) under its upcoming Carbon Border Adjustment Mechanism (CBAM). This is a major win for Indian exporters of carbon‑intensive goods such as steel, aluminium, cement, fertilizers, and hydrogen.

The UK plans to impose carbon taxes on imports to account for emissions from next year 2027 onwards. With this recognition, Indian exporters can reduce the hit of double taxation as the carbon costs already paid under India’s scheme will be credited in the UK system.

This move strengthens India’s position in global trade, eases the tax burden on exporters, and highlights growing cooperation between India and the UK on climate finance and carbon markets.