India and the European Union (EU) have agreed to strengthen technical cooperation on carbon markets and discuss the implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM). The discussions took place in New Delhi between Pankaj Agarwal, Secretary, Ministry of Power, and Gerassimos Thomas, a European Commission official. During the meeting, both sides explored opportunities to collaborate on carbon pricing, emissions monitoring, verification systems and capacity building. These discussions aim to support the development of carbon markets and improve technical coordination on climate-related policies.
India Highlights Progress Under Carbon Credit Trading Scheme
During the discussions, India highlighted the progress of its Carbon Credit Trading Scheme (CCTS), including the notification of emission-intensity reduction targets for 490 industrial units. The scheme aims to encourage industries to reduce emissions by establishing a framework for carbon credit trading. Furthermore, these efforts form part of India’s broader approach to advancing industrial decarbonisation and developing a domestic carbon market.
Non-Fossil Energy Capacity Reaches 308 GW
India also highlighted the growing contribution of non-fossil energy sources to its electricity sector. According to the figures shared during the meeting, non-fossil sources account for 308 GW of the country’s total installed electricity generation capacity of 558 GW. This expansion supports India’s efforts to diversify its energy mix and reduce the carbon intensity of economic activity.
India and EU Discuss CBAM Implementation
The EU acknowledged India’s progress in developing its domestic carbon market. Both sides also discussed the implementation of the Carbon Border Adjustment Mechanism, which is designed to address carbon emissions associated with certain imported goods. Given the implications of carbon pricing and emissions reporting for international trade, technical cooperation could help improve understanding of monitoring, reporting and verification requirements. India and the EU agreed to continue technical discussions on CBAM implementation and related climate policies. As reported by esgworldwide.org, the continued dialogue is expected to support cooperation on carbon markets while addressing the technical challenges associated with industrial emissions and cross-border trade.
