Alerts & Updates 4th Jun 2026
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.
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