Electricity demand is expected to grow 6.4% annually till 2030, making a rapid coal exit near-impossible. A coal cess will signal India is pricing its carbon dependence. It could also reduce carbon costs exporters face at the border. Britain has recognised India's Carbon Credit Trading Scheme (CCTS) for carbon-price relief under its CBAM. The EU is yet to do so. A cess could strengthen India's case for similar relief, while retaining more carbon revenue at home to fund the energy transition.