Q. Consider the following statements regarding the Carbon Border Adjustment Mechanism (CBAM):
1.The CBAM imposes a border tax on carbon-intensive goods such as iron, steel, and aluminium.
2.The CBAM is imposed by European Union on exported goods.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation: Only Statement 1 is correct
Statement 1 is correct and Statement 2 is incorrect: European Union’s proposed Carbon Border Adjustment Mechanism (CBAM), which is to be implemented from next year.
- The CBAM is a tool to put a price through imposing border tax on imported carbon intensive goods, like iron & steel, aluminium and cement.
- India has, however, strongly opposed the EU’s move as it will put a tariff burden on such products of developing countries and impact their trade.
Source: MSN
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