India has stepped up efforts to address a key implementation challenge for exporters facing the European Union’s Carbon Border Adjustment Mechanism (CBAM)—the limited availability and recognition of accredited verifiers who can certify embedded carbon emissions in exported goods.
The government has constituted a Committee on Export Preparedness for EU CBAM under the chairmanship of Additional Secretary (Trade Negotiations Bilateral) in the Department of Commerce, bringing together key ministries and departments, regulators and industry bodies to coordinate India’s preparedness and address compliance-related issues.
A major focus of the government’s efforts is to develop domestic verification capacity. The National Accreditation Board for Certification Bodies (NABCB) has held consultations with prospective validation and verification bodies (VVBs), with two accredited VVBs having submitted applications for EU and UK CBAM-related accreditation. Their office assessments are currently under way.
The shortage of recognized verifiers is a significant concern for Indian exporters because CBAM compliance requires reliable measurement, reporting and verification (MRV) of embedded emissions. Without an adequate pool of accredited verifiers, exporters could face higher compliance costs and difficulties in obtaining the documentation required under the EU regime.
The government is also seeking recognition of NABCB by the EU as an accreditation body for CBAM verifiers. The Commerce and Industry Minister Piyush Goyal has written to the EU Commissioner for Trade and Economic Security seeking such recognition. Separate discussions are being held with the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD) on verifier accreditation and other aspects of CBAM implementation.
India is also discussing a memorandum of understanding with an EU-recognised accreditation body, which officials expect could help support NABCB’s recognition in the future.
Another challenge concerns the availability of reliable emissions data, particularly for steel exports. The government has taken up the issue with the Ministry of Steel and sought a mechanism for upstream producers to account for and provide data on embedded emissions. Such information is essential for downstream exporters to calculate the carbon content of their products and meet CBAM reporting requirements.