Alerts & Updates 4th Jun 2026

EU CBAM: Draft Rules on Carbon Price Paid in a Third Country Released – Implications for Indian Exporters

Authors

Ambarish SathianathanPartner | Mumbai
Sanjay NotaniPartner | Mumbai
Naghm GheiAssociate Partner | New Delhi | Noida
Aayush Rastogi
Aayush RastogiPrincipal Associate | New Delhi | Noida

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On 13 May 2026, the European Commission released draft rules on how carbon prices paid in third countries may reduce the number of CBAM certificates to be surrendered by EU importers. If adopted, the rules will apply retrospectively from 1 January 2026 and will recognise only carbon prices effectively paid under binding carbon pricing mechanisms linked to the embedded emissions of CBAM goods.

For Indian exporters, the draft is significant because recognition of India’s Carbon Credit Trading Scheme will not be automatic and will require product-level attribution, evidence of payment, and independent certification.

We summarize the draft rules, key compliance requirements, and potential implications for Indian exporters in our update.

Read the update here

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