Panel formed to review methods for calculating emissions as per EU norms
India has established a committee to tackle challenges from the EU's Carbon Border Adjustment Mechanism. The group includes members from key ministries and industries. They will review and recommend methodologies for emission reporting. The CBAM i...
India has set up a technical committee to discuss the challenges associated with the monitoring, reporting and verification (MRV) of embedded emission calculations in the EU's Carbon Border Adjustment Mechanism (CBAM).
Officials said the committee, with members from industry and ministries such as commerce and industry, steel and power, and industry representatives, will review the existing methodologies and frameworks for MRV of embedded emissions.
"There is a pressing need to address the technical aspects and challenges of CBAM and safeguard India's interests in the global carbon regulatory landscape," said an official.
The EU's CBAM will translate into a 20-35% tax on select imports into the EU from January 1, 2026. From that date, EU importers will have to declare and purchase CBAM certificates to cover the emissions associated with producing imported steel products.
New Delhi has strongly criticised the move and is in dialogue with the EU on the issue. At the World Trade Organization, India has opposed the measure, terming it unilateral and is looking at multiple actions to deal with it.
The committee will identify, develop and recommend solutions to the Bureau of Energy Efficiency, identify gaps and challenges in current practices and propose improvements and alternative methodologies that align with CBAM requirements.
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The CBAM will impact the cement, iron and steel, aluminium, fertiliser, electricity and hydrogen sectors. The EU tax drill began on October 1, 2023 when non-EU steel producers reported direct and indirect emissions.
India's exports to the EU in FY24 amounted to $75.9 billion, with mineral fuels, electrical machinery and iron and steel being the top products.
"The committee will provide expert insights and technical knowledge to figure out how to tackle this protectionist measure," said the official.
As per the Council on Energy, Environment and Water, India's exports of around $37 billion, which is approximately 43% of the country's exports to the EU as of 2022, are likely to be impacted due to the bloc's various non-tariff measures including the CBAM.
