- Carbon Border Adjustment Mechanism (CBAM) is a proposed tax by the European Union on energy-intensive products imported from countries like India and China
- A report by the Centre for Science and Environment (CSE) claims that CBAM will impose a 25% tax on carbon-intensive goods exported from India to the EU
- Developing countries are concerned that CBAM will harm their economies and make trading with the EU too expensive
- Critics argue that CBAM unfairly penalizes the Global South and overlooks historical emissions from the Global North
- CSE recommends a counter-tax on rich countries responsible for climate change and implementing a domestic carbon tax to support decarbonization efforts in India.
Source: timesofindia.indiatimes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
