Goyal Says Government Will Fund MSME Exporters' Certification Costs for EU CBAM and Deforestation Rules
Commerce Minister Piyush Goyal said in Berlin that the government will fund MSME exporters' certification costs under the Export Promotion Mission, including EU CBAM and deforestation rules. It is a remark, not a notified scheme, and no claim process has been announced.
Commerce and Industry Minister Piyush Goyal has said the government will pay the certification costs of MSME exporters under the Export Promotion Mission (EPM), including the costs linked to the European Union's carbon border tax and its deforestation rules. He said this in Berlin on 22 October.
One thing to be clear about first: this is a remark by the minister, as reported by Moneycontrol. It is not a notified scheme. The report does not mention guidelines, an application process, a budget or a portal, so there is nothing to apply for yet.
What the minister said
Goyal said the government was willing to support the entire cost of certification for MSME exporters, for whatever products and whichever area, under the EPM. That includes costs related to the EU's Carbon Border Adjustment Mechanism (CBAM) and the deforestation rules. For other certification costs, he said the government would take care of them in a graded way.
The report presents this as an effort to help smaller businesses comply with changing trade requirements in the European market, where climate and environmental rules could raise the cost of access, particularly for businesses with limited resources to measure emissions, trace supply chains and obtain the necessary certifications.
Why these two EU rules matter to exporters
CBAM. The mechanism entered its definitive phase on 1 January 2026. It puts a carbon cost on imports of certain emissions-intensive goods, so that they are treated like products made inside the EU. It currently covers cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
EU importers are the ones responsible for meeting CBAM obligations, including buying certificates for the covered emissions. But the report notes that the rules can still reach overseas suppliers, through demands for emissions data, verification and possible changes in sourcing costs.
The deforestation regulation. This rule aims to make sure products sold in the EU do not come from land that was recently deforested or degraded. It covers cattle, cocoa, coffee, palm oil, rubber, soy and wood, along with specified derived products. Businesses must establish where their goods come from and meet traceability and due diligence requirements.
According to the report, it takes effect from 30 December for large and medium-sized operators and from 30 June 2027 for most micro and small operators. The report does not state the year for the first date.
What has not been announced
The report leaves several questions open. Until the government says more, treat these as unknown:
- How an MSME exporter would claim the support under the EPM, and whether there is any form or portal.
- Which certifications count, and whether the support covers testing, verification or consultants' fees. The minister spoke of certification cost generally.
- What the graded approach means for costs outside CBAM and deforestation.
- Whether costs you have already paid would be covered.
- When the support starts, and how much money is set aside.
The FTA remark
Goyal also spoke about the proposed India-EU free trade agreement. He said he hoped it would be signed by the end of the year and operationalised by March or April 2027. That is his hope, not a confirmed date.
What this means for you
If you are an MSME that exports, or sells to a business that exports, to the EU:
- Check whether your product is covered. If you supply cement, iron and steel, aluminium, fertilisers, electricity or hydrogen, CBAM is relevant. If you deal in cattle, cocoa, coffee, palm oil, rubber, soy, wood or products derived from them, the deforestation rule is relevant.
- Ask your EU buyer what they need from you. Emissions data and proof of where your goods came from are the kind of information the report says buyers may ask for.
- Start keeping records now. Emissions measurements, supplier details and origin records are needed whichever way the funding goes.
- Do not count on reimbursement yet. Do not sign a large certification contract assuming the government will repay it. Nothing has been notified.
- Watch for the official announcement. Once the EPM support is formally announced, check official government announcements for the details.
Source: Moneycontrol report on Piyush Goyal's remarks in Berlin.
Cover photo: Zoshua Colah on Unsplash
