New Delhi, July 26 -- India was unable to secure an exemption from the UK's upcoming Carbon Border Adjustment Mechanism (CBAM) as part of the Comprehensive Economic and Trade Agreement (CETA) signed on Thursday.

This move could significantly affect carbon-intensive Indian exports, the Global Trade Research Initiative (GTRI) said on Friday.

The UK is set to implement CBAM from January 2027, mirroring the European Union's mechanism, and will impose carbon taxes on imports in high-emission sectors such as iron, steel, aluminium, fertilisers, cement, ceramics, hydrogen, and glass.

Tax rates could range between 14-24 percent, depending on the carbon intensity of the products.

GTRI Founder Ajay Srivastava termed the lack of a carve-out for ...