# Indian Textile Exporters and EU Rules in 2026: CBAM Does Not Apply, Buyers Still Ask

Canonical: https://senseible.earth/climate-intelligence/india-textile-exporters-cbam-eu-compliance-2026

Updated 2026-10-11.

Textiles and garments are not covered by EU CBAM. What does reach Indian textile exporters in 2026 is buyer demand: large EU brands reporting under CSRD need supplier emissions data, and since Directive (EU) 2026/470 they may not ask suppliers with 1,000 or fewer employees for more than the voluntary VSME-based standard.

## At a glance

| Rule | Applies to Indian textile exporters? | What it means |
| --- | --- | --- |
| EU CBAM | No | Textiles are not CBAM goods |
| EU CSRD (after Directive 2026/470) | Indirectly | Buyers with over 1,000 employees and €450 million turnover report value-chain emissions |
| CSRD value-chain cap | Yes, protects you | Buyers may not require more than the voluntary standard from suppliers with 1,000 or fewer employees |
| India CCTS | For larger textile units | Textiles were added to the obligated sectors on 13 January 2026 |
| SEBI BRSR value chain | Indirectly | Top 250 listed companies may disclose value-chain data voluntarily from FY 2025-26 |

## What EU buyers actually ask for

- Scope 1 and 2 emissions for your facility, with the emission factors used.
- Energy use: grid electricity, captive power, boiler fuel.
- For wet processing: steam, chemicals and water.
- Sometimes a product carbon footprint per garment or per kilogram of fabric.

## Worked example: a dyeing unit's Scope 2

| Step | Value |
| --- | --- |
| Grid electricity in a year | 2,400 MWh |
| India grid factor (CEA v21.0, FY 2024-25) | 0.710 tCO2 per MWh |
| Scope 2 (location-based) | 1,704 tCO2 |
| Fabric output | 3,000 tonnes |
| Scope 2 per kg of fabric | 0.57 kgCO2 |

Add boiler fuel (Scope 1) to complete the facility figure. You can produce this from your electricity and fuel bills on the [Senseible homepage](https://senseible.earth/).

## Why the VSME cap helps small suppliers

Before Directive 2026/470, large buyers could send suppliers long, inconsistent questionnaires. Now, for suppliers with 1,000 or fewer employees, the voluntary VSME-based standard sets the ceiling of what a CSRD reporter can require. Preparing one VSME-aligned data set lets you answer every EU buyer the same way. The Commission's staff document indicates the cap applies to value-chain requests from financial year 2027.

## Frequently asked questions

### Will CBAM be extended to textiles?

There is no adopted law extending CBAM to textiles. A December 2025 Commission proposal concerns downstream steel and aluminium products, not textiles.

### Does India's CCTS affect my unit?

Only if your unit is among the obligated entities listed in the target rules. Textiles were added on 13 January 2026; check the notified list.

### What is the fastest way to answer a buyer questionnaire?

Calculate facility Scope 1 and 2 from 12 months of fuel and electricity bills, state the emission factors and their sources, and keep the documents.

## Related

- [Scope 3 for Bangladesh textile exporters](https://senseible.earth/climate-intelligence/scope-3-calculator-bangladesh-textile-exporters)
- [Vietnam textile carbon footprint data for EU buyers](https://senseible.earth/climate-intelligence/vietnam-textile-carbon-footprint-eu-buyers)
- [How to calculate a carbon footprint from electricity bills](https://senseible.earth/climate-intelligence/how-to-calculate-carbon-footprint-electricity-bills)
- [Scope 3 for textile exporters in India](https://senseible.earth/solutions/scope3-textile-india)

## Sources

- [Directive (EU) 2026/470 (Omnibus I)](https://eur-lex.europa.eu/eli/dir/2026/470/oj/eng)
- [Council of the EU: simplification signed off, 24 February 2026](https://www.consilium.europa.eu/en/press/press-releases/2026/02/24/council-signs-off-simplification-of-sustainability-reporting-and-due-diligence-requirements-to-boost-eu-competitiveness/pdf/)
- [Central Electricity Authority: CO2 Baseline Database v21.0](https://cea.nic.in/cdm-co2-baseline-database/?lang=en)
- [PIB: CCTS obligated entities](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2217239)
- [Regulation (EU) 2023/956 (CBAM), Annex I](https://eur-lex.europa.eu/eli/reg/2023/956/2025-10-20)

## Related guides

- [Can we reroute supply chains to reduce CBAM exposure legally?](https://senseible.earth/climate-intelligence/reroute-supply-chains-reduce-cbam-exposure)
- [CBAM for Indian Exporters: What Changed on 1 January 2026](https://senseible.earth/climate-intelligence/cbam-compliance-indian-exporters)
- [BRSR Reporting Requirements in India: Who Reports, BRSR Core and Value-Chain Rules](https://senseible.earth/climate-intelligence/brsr-reporting-requirements-india)