News: India can use the IPEF framework to attenuate Indian industries functioning in accordance with its climate change goals. Already, CBAM framework is being employed the EU to make industries compliant with climate justice principles.
1. Indo-Pacific Economic Framework for Prosperity (IPEF) was launched by the USA, along with other partner countries, in May 2022.
2. IPEF comprises of 14 members, including India.
3. This initiative aims to contribute to cooperation, stability, prosperity, development, and peace within the Indo-Pacific region.
4. Carbon Border Adjustment Mechanism is a carbon tariff that is imposed on certain carbon intensive goods such as steel, iron, cement, aluminium, electricity, fertilizers, hydrogen products that are imported into the EU. It has been launched as part of EU’s ‘Fit for 55’ Package.
5. CBAM will be implemented in phases, with transitional phase from 2023 to 2025 and definitive regime beginning from 2026.
