New Delhi [India], October 12 (ANI): India and the European Union have agreed to strengthen technical cooperation on carbon markets, including carbon pricing mechanisms and monitoring systems, as both sides discussed the implementation of the EU's Carbon Border Adjustment Mechanism (CBAM), the Ministry of Power said on Monday.

The discussions took place during a bilateral meeting between Pankaj Agarwal, Secretary in the Ministry of Power, and Gerassimos Thomas, Director-General for Taxation and Customs Union at the European Commission, in New Delhi.

The two sides expressed willingness to continue technical engagement on the recognition of carbon pricing mechanisms, monitoring, reporting and verification (MRV) systems, and capacity building. They also agreed to facilitate continued dialogue on carbon markets, CBAM-related methodologies and other areas of mutual interest.

During the meeting, Agarwal highlighted India's progress under the Carbon Credit Trading Scheme (CCTS), including the notification of emission intensity reduction targets for 490 industrial units and the development of the domestic carbon market.

The discussions come as India continues to develop its framework for carbon trading and emission reduction, with cooperation on carbon pricing and verification systems emerging as an important area of engagement with the European Union.

Agarwal also highlighted India's progress in expanding non-fossil energy capacity. Non-fossil sources account for 308 gigawatts (GW) of India's total installed electricity generation capacity of 558 GW, according to the ministry.

The European Union side appreciated India's progress in developing its carbon market and shared updates on the implementation of CBAM.

The mechanism was among the key subjects discussed during the meeting, alongside opportunities to improve technical understanding and cooperation between the two sides. Both sides agreed to continue engagement on methodologies related to the mechanism and on systems for monitoring, reporting and verifying emissions.

The meeting underlines the importance of continued dialogue between India and the European Union on carbon market development, emissions accounting and capacity building, as both sides seek to strengthen cooperation in these areas.

The Ministry of Power said the discussions focused on India's carbon market development, the EU's CBAM and opportunities for enhanced technical cooperation. (ANI)