Engineering goods exporters seek mandate on carbon emission certificate under EU norms

New Delhi: Engineering goods exporters have sought a mandate from the government on carbon emission certificates as without it, small companies would be unable to export to the EU due to the requirements of the bloc’s Carbon Border Adjustment Mechanism (CBAM).

The concern, as per engineering exports body EEPC, is that raw material importers need to be able to provide accredited carbon emission data but they’re unable to provide that due to which exporters can’t have test certificates.

“Our entire value chain is impacted but most emissions happen in raw materials. We need accredited carbon emission data from


them otherwise we can’t have test certificates,” said Pankaj Chadha, chairman, EEPC.

Under CBAM, importers must submit annual declarations based either on actual verified emissions data or on default emissions values. In the case of actual emissions, the verification must be carried out by independent verifiers accredited by EU national accreditation bodies. The CBAM came into force this January.

“70% of the engineering exports to the EU are from MSMEs and they need accredited data for carbon emission certificates. Hence, a mandate is required for this,” Chadha said.

On trade with the US, Chadha identified the proposed Lindsey Graham tariff bill, passed by the US Senate and now pending in the House of Representatives, as the most significant concern. The bill seeks to target countries buying Russian oil with upto 100% tariffs.

In April-July, FY27, engineering goods exports to the US rose 12% to $7.7 billion, led by iron and steel which grew 103%, he said, attributing the growth to the 50% Section 232 duty that applies uniformly to India and its competitors and pitched for trade deals with Mexico and Canada to derisk the supply chain.