India-EU CBAM Talks Progressing, Implementation Expected Soon

"Hopefully between this year and next year... this will depend on political discussions and technical discussions, but hopefully in the next months," Gama said on the sidelines of the event "Navigating CBAM: Challenges, Readiness, and India's Carbon Market Context."

TIC Council is an international non-profit association (AISBL) acting as the voice of the testing, inspection and certification industry.

Gama said the CBAM framework will have wide-ranging implications for Indian producers, exporters and European importers, particularly in defining responsibilities, liabilities and compliance commitments across the value chain.

"In today's event, we went over CBAM, what it means for Indian producers, what it means for Indian exporters and what it will mean for European importers in terms of responsibilities, liabilities, in terms of commitments, and also the role that tech companies as accredited verifiers will play both in the EU and outside of the EU," he said.

He explained that the mechanism is rooted in the EU's long-standing carbon market, developed over more than two decades, and is aimed at preventing carbon leakage.

"For over 20 years, the EU has developed its own carbon market, and it is important to make sure that there is no carbon leakage, so that production in Europe does not move to avoid paying a carbon price, and therefore CBAM is created," he said.

Beyond addressing carbon leakage, CBAM is also designed to support the development of international carbon markets and align climate policies globally.

"CBAM is also created for a very specific international task, which is the development of international carbon markets," Gama added.

On India's response, he pointed to the ongoing development of the Carbon Credit Trading Scheme (CCTS), describing it as a positive step.

"In India, the Carbon Credit Trading Scheme is being developed as a response to CBAM, and we think this is a very positive development," he said.

Gama also highlighted the role of the Testing, Inspection and Certification ecosystem in supporting compliance and energy transition.

"The TIC sector is ready to support, with test and inspection certification, the companies in India with energy transition, with everything," he said.

Referring to India's climate goals, he described the net zero target of 2070 as ambitious and expressed hope for collaboration.

"We really hope that we can also collaborate in this ambitious target," he added.

Seema Shukla, Executive Director, TIC Council-India, told ANI on the sidelines of the same event that the exports of steel and aluminium from India to the European Union (EU) witnessed a significant decline even before the actual implementation of the EU's Carbon Border Adjustment Mechanism.

Separately, Ranjeet Mehta, Secretary General of PHD Chamber of Commerce and Industry, also told ANI that the CBAM is inevitable and exporters must prepare.

"CBAM will be a reality in the times to come. Therefore, when we need to export to the EU, in that case CBAM will be sooner or later a reality, and our exporters, our MSMEs, need to be prepared for the CBAM," he said.

He said that while CBAM was earlier expected around 2026 and has been postponed, compliance would be unavoidable.

"If our products are not sustainable, they are not green products; then in that case we need to be in line with the carbon border adjustment mechanism," Mehta said.

Highlighting the scale, he said India has around 80 million MSMEs facing multiple pressures.

He emphasised awareness and capacity building, adding that workshops are being conducted to prepare businesses.

He also cautioned that achieving competitiveness under CBAM norms will take time despite India's green transition, and warned of potential additional taxes once implemented, calling for diplomatic engagement to secure more time for industry.

- ANI