U.K. Approves India's Carbon Credit Scheme for Tax Relief
By Editor • September 7, 2026 • 1 min read
In a significant development for trade relations, the United Kingdom has officially recognized India’s Carbon Credit Trading Scheme (CCTS) as a qualifying mechanism for its carbon border adjustment tax, thereby offering relief to Indian exporters. This announcement was made on September 7, 2026, by a government official, revealing the inclusion of India's scheme in the U.K.'s list of carbon pricing mechanisms.
The recognition comes after persistent negotiations between the two nations, with India’s Commerce Ministry advocating for this inclusion. The CCTS aims to mitigate greenhouse gas emissions by allowing for the trading of Carbon Credit Certificates, thus pricing emissions effectively within the Indian economy. The Bureau of Energy Efficiency will manage the financial support for this scheme through collected fees and its own resources.
Under the newly established framework, U.K. importers of eligible Indian products will be able to avail themselves of carbon price relief in line with the effective carbon price under the CCTS. This change is expected to alleviate the carbon border adjustment tax liability on these goods, providing a competitive edge for Indian exporters in the U.K. market. The collaboration between the two countries is set to continue, with ongoing discussions aimed at enhancing carbon market strategies and ensuring compliance with respective regulations.
Source: www.thehindu.com
