Q. With reference to Carbon Border Adjustment Mechanism (CBAM) consider the following statements:
1.It has been described as a tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU and to encourage cleaner industrial production in non-EU countries.
2.CABM would apply to all products imported to EU from the developing nations.
3.With the implementation of CABM, India, Brazil and South Africa would be most affected among the developing countries. .
Which of the statements given above are correct?
Answer: C
Notes:
Explanation –
Statement 1 and 3 are correct. CBAM has been described as a landmark tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU and to encourage cleaner industrial production in non-EU countries. With the implementation of CABM, India, Brazil and South Africa would be most affected among the developing countries.
Statement 2 is incorrect. CBAM would initially apply to imports of certain goods and selected precursors, whose production is carbon-intensive and are at risk of ‘leakage’ such as the cement, iron and steel, aluminium, fertilizers, electricity and hydrogen sectors.
Source: ForumIAS
