Q. Consider the following statements with respect to Carbon Border Adjustment Mechanism (CBAM):
1.CBAM mainly targets finished goods rather than raw material.
2.CBAM will generate more revenue for the EU and/or force exporters of the developing countries to squeeze their profit margins and wages to reduce costs.
Select the correct statements using the codes given below:
Answer: B
Notes:
Explanation –
Statement 1 is incorrect. CBAM mainly targets raw materials rather than finished goods.
Statement 2 is correct. CBAM will generate more revenue for the EU and/or force exporters of the developing countries to squeeze their profit margins and wages to reduce costs.
Source: ForumIAS
