The system, covering seven sectors, emphasizes benchmark calibration and the exclusion of the power sector in early stages.
Why it matters: Low carbon prices in India will trigger high CBAM taxes at the EU border, directly increasing the cost of your imported mounting structures and trackers.
If you think a carbon trading scheme in Delhi doesn’t affect your racking and mounting prices in Dusseldorf, you haven't been paying attention to the EU’s Carbon Border Adjustment Mechanism (CBAM). This IEEFA report on India’s new Carbon Credit Trading Scheme (CCTS) should be required reading for any developer currently sourcing steel or aluminum components from the subcontinent.
The CBAM Price Floor
Under EU Regulation 2023/956, the honeymoon period for imported carbon-intensive goods is ending. If India’s internal carbon price is low—or non-existent in the power sector as this report suggests—the EU will simply collect that tax at the border. We’re looking at a scenario where the "cheap" Indian steel in your 5MW tracker project suddenly carries a 20-30% premium because the Indian government failed to set aggressive benchmarks. You aren't just buying hardware anymore; you're buying their regulatory compliance.
The Power Sector Blind Spot
The exclusion of the power sector in the early stages of India's CCTS is a massive red flag for European procurement teams. Most Indian steel is produced using a grid that remains heavily reliant on coal. By not pricing carbon in the power sector, the embedded emissions of Indian-manufactured solar components will remain sky-high. When those goods hit a European port, the CBAM certificates required will be priced against the EU ETS, which, even at a depressed €65/tCO2e, will dwarf any domestic Indian credit price.
Strategic Sourcing Shift
We’ve seen this pattern before with the anti-dumping duties on modules. Smart EPCs are already asking for Environmental Product Declarations (EPDs) from Indian suppliers like Tata or JSW. If your supplier can’t show a clear path to internal carbon pricing that satisfies EU auditors, you are essentially gambling on your project’s margin. My advice? Start auditing the carbon intensity of your mounting structures now, before the 2026 full implementation of CBAM turns your 'cost-effective' supply chain into a liability.