UK Recognises India’s Carbon Credit Trading Scheme

Why in News?

The United Kingdom recognised India’s Carbon Credit Trading Scheme (CCTS). This will allow the effective carbon price paid in India to be counted while calculating liability under the UK’s Carbon Border Adjustment Mechanism (CBAM).

Key Points

• The UK’s Carbon Border Adjustment Mechanism (CBAM) will apply from January 1, 2027 to carbon-intensive imports such as aluminium, cement, fertiliser, hydrogen, iron and steel.
• Recognition of India’s CCTS allows the effective carbon price paid in India to reduce the CBAM liability on Indian goods entering the UK.

Exam Connect

• CCTS → under the Energy Conservation Act, 2001 → implemented by Bureau of Energy Efficiency (BEE) → under Ministry of Power