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Export: SEPC launches Carbon Cell for MSMEs

Fiinews by Fiinews
August 19, 2025
in Exports
Reading Time: 3 mins read
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Ministry of Commerce and Industry.

A firm handshake after the MoU signing by SEPC and CleanCarbon.ai.

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CleanCarbon.ai to support MSMEs achieve carbon compliance

The Services Export Promotion Council (SEPC), under the Ministry of Commerce and Industry, in collaboration with CleanCarbon.ai, has launched “Carbon Cell”, a dedicated end-to-end Carbon Border Adjustment Mechanism (CBAM) reporting support platform, says the Ministry of Commerce and Industry .

This strategic initiative aims to empower Indian exporters, especially Micro, Small, and Medium Enterprises (MSMEs) in the iron and steel sectors, with seamless CBAM compliance and uninterrupted trade with the European Union https://fieo.org/.

The ceremonial launch was attended by Abhay Sinha, Director General, SEPC, and Nilesh Bhattad, Founder and CEO of Cleancarbon.ai and other members from SPEC and Cleancarbon team, according to the Ministry announcement on 18 Aug.

Speaking at the event, Manish Dabkara, panel head of the SEPC Environmental Services, stated, “CBAM signals a shift in global trade norms. The Carbon Cell is poised to help lakhs of MSMEs, especially in the iron and steel sector. CBAM compliance ensures uninterrupted business with the EU. It’s an opportunity to lead with sustainability and redefine our export edge. Indian exporters must align with low-carbon practices to stay resilient, and relevant in the EU market.”

He emphasized the need for timely and accessible resources for exporters as global carbon regulations become stricter https://www.bseindia.com/.

The EU Carbon Border Adjustment Mechanism was introduced in October 2023. It is the European Union’s initiative to ensure that imported carbon-intensive goods reflect a fair cost for the carbon emissions released during their production. It aims to promote cleaner industrial practices in non-EU countries by levelling the playing field for EU industries and preventing carbon leakage.

CBAM is currently in a transitional phase from 2023 to 2025, with full implementation from 2026. This phased rollout is designed to align with the gradual removal of free allowances under the EU Emissions Trading System (ETS), supporting the EU’s broader goal of industrial decarbonisation http://meity.gov.in.

Nilesh Bhattad, CEO of CleanCarbon.ai, remarked, “Through our collaboration with the Ministry of Commerce and Industry, we will support thousands of MSMEs in achieving seamless carbon compliance and reporting under the new EU regulation. This partnership ensures effective and timely assistance for Indian manufacturers and suppliers to the EU https://www.nseindia.com/.

“Once CBAM goes into definitive Phase in January 2026, a carbon tax will be imposed on the embedded emissions of products, potentially increasing landing costs by 8–10%, depending on emission levels. Manufacturers who are not compliant will be unable to ship their products after January 2026—making early compliance essential.”

Cleancarbon.ai, India’s No.1 CBAM compliance company, will provide robust tools and consulting services for carbon emissions calculation, documentation, and CBAM report submissions in accordance with EU mandates.

This launch marks a significant step in India’s efforts to promote green trade and support exporters in aligning with evolving international sustainability standards https://sbi.com.in/.

Cleancarbon.ai offers advanced AI-driven solutions to track, calculate, and report embedded carbon emissions in supply chains. Focused on simplifying the complexities of global carbon regulations, Cleancarbon.ai has enabled more than 200 exporters with their CBAM compliance and have delivered 10,000 plus CBAM reports. With the EU’s CBAM legislation now being phased in, “Carbon Cell” will serve as a critical resource hub for MSMEs, offering training, tools, and one-on-one support to ensure timely, accurate, and cost-efficient compliance.

The Services Export Promotion Council (SEPC), apex trade body established by the Ministry of Commerce and Industry, facilitates the growth of India’s services sector through Trade Intelligence, Export Development, Export Promotion & Investment, and Creating an Enabling Business Environment. SEPC supports various service verticals by connecting them with global markets and fostering ease of doing business for Indian exporters. Fiinews.com

Tags: Ministry of Commerce and Industry
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