India and the European Union (EU) have agreed to continue discussions on carbon markets and the methodologies of the EU’s Carbon Border Adjustment Mechanism (CBAM). Power Secretary Pankaj Agarwal met Gerassimos Thomas, Director-General of the European Commission’s Directorate-General for Taxation and Customs Union, in New Delhi on Monday to discuss carbon pricing and opportunities for technical cooperation.
The Ministry of Power said both sides agreed to strengthen cooperation and facilitate continued dialogue on carbon markets, CBAM-related methodologies and other areas of mutual interest.
CBAM places a carbon-related cost on certain goods imported into the EU, based on emissions generated during their production. The discussions also covered India’s domestic carbon market, the EU mechanism’s implementation and opportunities to enhance technical cooperation.
India’s Carbon Market Development and Clean Energy Capacity
During the meeting, Agarwal outlined India’s progress under the Carbon Credit Trading Scheme (CCTS). According to the Ministry of Power, he highlighted the notification of emission intensity reduction targets for 490 industrial units and the development of the domestic carbon market.
Agarwal also highlighted the power sector’s transition towards cleaner energy sources. Non-fossil sources account for 308 GW of India’s total installed power generation capacity of 558 GW, according to the ministry.
The European Commission delegation acknowledged India’s progress in developing its carbon market and shared updates on the implementation of CBAM.
India-EU Technical Cooperation on Carbon Pricing
Both sides expressed their willingness to continue technical engagement on the recognition of carbon pricing mechanisms. Discussions will also cover monitoring, reporting and verification (MRV) systems, along with capacity building.
The continued dialogue provides a platform for India and the EU to exchange technical perspectives on carbon markets and CBAM-related methodologies. It also supports further cooperation on carbon pricing and related implementation frameworks.
