International trade has a carbon problem
03-06-2023
By Admin
International trade has a carbon problem
International trade has a carbon problem
EU has announced the Carbon Border Adjustment Mechanism.
It will levy a carbon tax on imports of products made from the processes which are not Environmentally sustainable or non-Green.
Objective- The CBAM is a policy tool aimed at reducing carbon emissions by ensuring that imported goods are subject to the same carbon costs as products produced within the EU. This will ensure its climate objectives are not undermined by carbon-intensive imports.
Impact on India- It will have an adverse impact on India's exports of metals such as Iron, Steel and aluminum products to the EU, because these will face extra scrutiny under the mechanism.