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Source: The post is based on the article “European Union official seeks to allay India’s concerns on ‘carbon tax’” published in The Hindu on 27th May 2023
What is the News?
European Union’s chief climate negotiator has recently said that Carbon Border Adjustment Mechanism (CBAM) is not intended to be “protectionist” and only meant to avoid the problem of ‘carbon leakage. He also wants to alleviate India’s concerns with CBAM.
What is Carbon leakage?
‘Carbon leakage,’ refers to cheaper, more carbon-intensive goods making their way into the EU at the expense of domestically manufactured products that have been manufactured using costlier, renewable energy. To counter such practice, the EU has brought into force the CBAM.
What is Carbon Border Adjustment Mechanism (CBAM)?
|Must read: Common Border Adjustment Mechanism|
What are India’s concerns with CBAM?
|Must read: EU’s carbon border tax – Explained, pointwise|
What are India’s options against the CBAM?
|Read here: A multi-pronged counter is warranted to tackle the EU’s carbon tax plans|