12.10.26 – By NewsIP Bureau – New Delhi – India and the European Union discussed carbon market development, the Carbon Border Adjustment Mechanism (CBAM) and technical cooperation during a bilateral meeting in New Delhi on October 12, 2026. Pankaj Agarwal, Secretary, Ministry of Power, met Gerassimos Thomas, Director-General for Taxation and Customs Union at the European Commission, to exchange views on carbon pricing frameworks and implementation-related developments. The discussions covered India’s domestic carbon market initiatives, the EU’s CBAM framework and opportunities to strengthen cooperation on monitoring, reporting, verification and capacity building.
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During the meeting, Agarwal highlighted progress under India’s Carbon Credit Trading Scheme (CCTS), including the notification of emission-intensity reduction targets for 490 industrial units. The initiative forms part of the country’s efforts to develop a domestic carbon market. He also outlined the expansion of non-fossil energy capacity in India’s electricity sector. Non-fossil sources account for 308 GW of the country’s total installed electricity generation capacity of 558 GW, according to the figures presented during the meeting. These developments provided context for the exchange on carbon pricing and climate-related policy frameworks.
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The European Commission side acknowledged India’s progress in carbon market development and shared updates concerning CBAM implementation. Discussions also addressed the potential for technical engagement on the recognition of carbon pricing mechanisms and the development of monitoring, reporting and verification (MRV) systems. Capacity building was another area identified for cooperation. These subjects are relevant to understanding how carbon pricing approaches are assessed and implemented, while the meeting provided an opportunity for both sides to exchange information on their respective policy developments.
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Both sides agreed to continue dialogue and strengthen cooperation on carbon markets, CBAM-related methodologies and other areas of mutual interest. The proposed continued engagement will cover technical issues, including carbon pricing mechanisms, MRV systems and capacity building. The meeting reflects an ongoing exchange between India and the European Union on carbon market policies and implementation approaches. No specific agreement on formal recognition of either side’s carbon pricing mechanism was announced in the information provided.
