India Among 18 Nations Reserving Third-Party Rights in Russia's WTO Case Against EU's CBAM

Key facts

• India is among 18 countries, including the UK, the US, China and Brazil, that reserved third-party rights to participate in Russia's WTO dispute against the European Union's Carbon Border Adjustment Mechanism (CBAM) package.
• On September 25, 2026, the World Trade Organization's Dispute Settlement Body agreed, at Russia's second request, to establish a panel to examine the EU's CBAM package and the alleged export subsidy under its greenhouse gas emission allowance trading scheme.
• Russia argued that CBAM imposes unjustified trade barriers on EU imports, breaches WTO obligations, and that free ETS allowances to select EU firms function as export subsidies; the EU maintained that CBAM and ETS comply with WTO rules.
• The EU's CBAM, currently being phased in, requires exporters of six carbon-intensive products, including steel, aluminium and cement, to pay a levy for embedded carbon emissions.
• Indian exporters, especially in the MSME sector, have raised concerns over the compliance burden and additional costs, and India has raised the matter with the EU at the WTO and bilaterally.
• India is working with the EU to secure recognition for its national accreditation body, the National Accreditation Board for Certification Bodies (NABCB), and local verification agencies.
• Other WTO delegations wishing to reserve third-party rights had to do so within 10 days of the meeting through a written communication.