CONCERNS OVER EU CARBON BORDER ADJUSTMENT TAX
Why in the news?
- The Economic Survey criticises the EU’s Carbon Border Adjustment Tax (CBAT) as protectionist.
- The tax, part of the Carbon Border Adjustment Mechanism (CBAM), imposes tariffs on energy-intensive imports like iron, steel, and aluminium.
- The Survey argues that CBAM contradicts the Paris Agreement’s principle of “Common but Differentiated Responsibilities.”
source:researchgate
About Carbon Border Adjustment Mechanism (CBAM) :
- Purpose: Tariff on carbon-intensive products to ensure fair carbon pricing.
- Implementation: Importers buy carbon certificates reflecting EU carbon prices.
- Start Date: Definitive regime from 2026; transitional phase (reporting only) until 2025.
- Coverage: Iron, steel, cement, fertilisers, aluminium, electricity, hydrogen.
About EU Carbon Border Tax (CBAM):
About European Union(EU):
Associated Article: https://universalinstitutions.com/decong-the-eus-carbon-border-tax/
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