India is urging the EU to validate its Carbon Credit Trading Scheme (CCTS) as its steel, iron and aluminium exports may face more inspections under the Carbon Border Adjustment Mechanism (CBAM) set to commence in October. Non-EU steel manufactures will have to report direct and indirect emissions under the EU tax structure that may impose a 20%-35% duty on select imports from January 1, 2026. The EU importers must acquire CBAM certificates that cover the carbon footprints associated with manufacturing imported steel products. India has put forward various options to combat CBAM and has initiated bilateral talks with the US and EU regarding the issue.