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UK CBAM: India seeks further talks ahead of 1 January carbon tax rollout
बातमीत का?
Even an FTA gives no exemption: the UK carbon border tax and CCTS question GS3 now asks
India seeks talks on the UK carbon border tax, which offers no exemption to FTA partners.
Why it matters: general awareness
What you need to know
2 मिनिटे
India has sought further talks with the United Kingdom ahead of its carbon border tax, which begins on 1 January.
India has been told there are no exemptions for free trade agreement partners, and recognition of India's carbon credit trading scheme is subject to conditions.
A carbon border adjustment mechanism charges imports of carbon-intensive goods in line with the carbon price paid at home; the European Union was the first to adopt one.
स्रोत: Topper IAS editorial (PIB / The Hindu / Indian Express)
महत्त्वाची तथ्ये
Remember these
- UK carbon border adjustment mechanism (CBAM) begins on 1 January
- India has sought further talks; no exemption for free trade agreement partners
- Recognition of India's Carbon Credit Trading Scheme (CCTS) is subject to conditions
- A CBAM charges imports of carbon-intensive goods in line with the carbon price paid at home
- The European Union was the first to adopt a CBAM
पूर्व · मुख्य
How the exam will ask it
पूर्व
- A carbon border adjustment mechanism places a carbon-linked charge on imports of selected carbon-intensive goods.
- The European Union was the first to adopt a carbon border adjustment mechanism.
- The UK CBAM offers no exemption to free trade agreement partners, so an FTA does not by itself shield exports.
- India's Carbon Credit Trading Scheme (CCTS) is a domestic carbon market whose recognition abroad depends on conditions.
मुख्य
GS3 (environment and trade) and GS2 (bilateral relations): unilateral carbon border taxes by the EU and UK raise the cost of Indian exports of steel, aluminium and similar goods, even with an FTA in place. India's response is to build credible domestic carbon pricing through the CCTS and press for mutual recognition, while invoking the principle of common but differentiated responsibilities. The way forward is negotiated recognition of equivalence, decarbonising export industries and coordinated positions with other developing countries.
Quick recall
Answer before you reveal
With reference to a carbon border adjustment mechanism, consider the following statements:
- It places a carbon-linked charge on imports of selected carbon-intensive goods.
- The European Union was the first to adopt such a mechanism.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
उत्तर पहा
उत्तर: C — The correct answer is Both 1 and 2. Both are true: the charge is carbon-linked and the EU pioneered the mechanism.
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