Profile
Settings
Refer your friends
Sign out
Why in the News?
The European Union has proposed a policy called the Carbon Border Adjustment Mechanism (CBAM) with effect from 2026.
Key Points:
- It aims to tax products such as cement and steel, that are extremely carbon intensive.
- Under CBAM, duties will be imposed on imported goods based on the carbon expended in producing them.
Opposition to CBAM
- BASIC countries has opposed this policy and called for an unfair shifting of responsibilities from developed to developing countries.
- BASIC is a group constituting Brazil, India, South Africa, and China.
- India has jointly stated that carbon border taxes could result in market distortion and aggravate the trust deficit amongst parties and must be avoided.
- CBAM will negatively impact the Indian industry which has significant export interests in the EU.
News Source: The Hindu
