India, UK engaged in discussions on carbon tax issue: Commerce Secretary

Posted on July 14, 2026
By Business News Today
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In brief

India and the United Kingdom are engaged in strategic negotiations regarding the UK's upcoming Carbon Border Adjustment Mechanism, scheduled for implementation in 2027. This regulatory framework poses significant challenges to Indian exporters, potentially affecting approximately USD 775 million in bilateral trade. The discussions, occurring concurrently with free trade agreement negotiations, aim to mitigate the impact on key sectors like steel manufacturing. Both nations are exploring solutions to balance environmental commitments with economic interests and trade competitiveness.

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India, UK engaged in discussions on carbon tax issue: Commerce Secretary

India and the United Kingdom are discussing Britain's carbon tax regulation. The UK plans to implement its Carbon Border Adjustment Mechanism starting in 2027. This new carbon tax could impact Indian exports worth USD 775 million. Discussions on this carbon tax were part of free trade agreement negotiations. India's steel exports to the UK have secured market access through the pact.