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Carbon Border Adjustment Mechanism (CBAM) UPSC NOTE

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  Carbon Border Adjustment Mechanism (CBAM), as it is called, are tariffs that will apply on energy-intensive goods imported into the Europe...

 

  • Carbon Border Adjustment Mechanism (CBAM), as it is called, are tariffs that will apply on energy-intensive goods imported into the European Union.

  • This is to ensure that local manufacturers are not at a competitive disadvantage from similar goods produced in developing countries whose industries have more permissive fossil fuel emission norms

  • The CBAM is expected to come into force on January 1, 2026. 

Impact on India

  • India not only has to deal with climate change and undertake energy transition but also deal with the protectionism of the developed countries. 

  • India is among the top eight countries that will be adversely affected by CBAM, as per the Global Trade Research Initiative report

  • Europe is on course to implement its Carbon Border Adjustment Tax 

  • These taxes are in contravention to the spirit of the Paris Agreement that recognised ‘Common but Differentiated Responsibilities’

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Carbon Border Adjustment Mechanism (CBAM) UPSC NOTE
Carbon Border Adjustment Mechanism (CBAM) UPSC NOTE
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Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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