In a relief to exporters, the UK has agreed to deduct the carbon price paid by them in India from their liability under its Carbon Border Adjustment Mechanism (CBAM) which comes into force January 2027. The UK has informed India that its carbon credit trading scheme (CCTS) is as per the provisions of its law on CBAM so it is allowed this deduction, sources said. The UK move comes as a relief as it was feared that CBAM will reverse the tariff gains to key sectors of exports from India to the UK under the Comprehensive Economic and Trade Agreement (CETA) that became operational on July 15. The relief is similar to what the European Union had extended to India last year.