Indian Exporters Urge Government for Mandatory Carbon Data Amid EU's Green Trade Shift

Indian companies exporting engineering goods are urgently asking their government to make it compulsory for raw-material suppliers to provide official, checked carbon-emission information. This strong request comes as the European Union Carbon Border Adjustment Mechanism (CBAM) has fully started its main phase, directly impacting trade. A huge 70% of India's engineering exports to the EU come from Micro, Small, and Medium Enterprises (MSMEs), which are now facing big challenges in meeting these tough new European rules. Without proper national support for data collection, these smaller businesses could find it very hard to sell their products in Europe. This isn't just about some new paperwork; it's about a big change in how global trade works because of rules for fighting climate change. The EU CBAM, which is a key part of its larger 'Green Deal', wants to make sure that European companies are not at a disadvantage when they compete with imports from countries that have less strict climate rules. The first, easy reporting part of CBAM ended in December 2025, and from January 1, 2026, the real financial costs began. This means importers in the EU now have to buy 'carbon emission certificate' to cover the carbon pollution made when their goods were produced. Indian exporters are finding it tough to get reliable and checked data from their many suppliers within India, which is essential for calculating and reporting their carbon footprint correctly. If they don't provide this verified data, the EU might use higher 'default values' which would make Indian products much more expensive. Now, the Indian government needs to act quickly. Exporters are hoping for a clear and strong national system for gathering and checking carbon data, possibly managed by departments like the Directorate General of Foreign Trade (DGFT) or the Ministry of Commerce and Industry. Without such help, many Indian businesses, especially the smaller ones, could lose their share in one of their biggest export markets. The EU is also offering some support to Indian MSMEs to help them adjust. Everyone will be watching to see how India handles this growing challenge and creates solutions that protect its exporters while also meeting global goals to reduce pollution. There are also talks about expanding the CBAM to cover even more products by 2028, adding more pressure.