UK recognizes India's carbon credit trading scheme under its 2026 CBAM regulations (ahead of CBAM taking effect in 2027)
The UK just recognized India's Carbon Credit Trading Scheme (CCTS) as part of rules tied to the CBAM, which will take effect in 2027 (recognition was made under 2026 regulations).
Thanks to this, UK importers buying carbon-heavy goods from India can get tax relief for the carbon fees already paid in India (basically, less double taxation).
This move is expected to make things smoother and cheaper for Indian exporters.
India's CCTS joins UK indicative list
India's CCTS now joins the U.K.'s published indicative list of overseas carbon pricing systems, showing both countries are working together to keep things fair and avoid extra taxes.
Importers will still need to prove they've met all requirements, but overall, it's a win for trade ties, and it highlights growing cooperation on climate and business between the two nations.