The Commerce and Industry Ministry in India has made a commitment to shield Indian industries from the European Union’s Carbon Border Adjustment Mechanism (CBAM). CBAM is a component of the EU’s “Fit for 55 in 2030 package,” aimed at reducing EU greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. CBAM ensures that imported goods incur equivalent carbon costs as those produced within the EU, requiring importers to annually declare the quantity of imported goods and their associated Greenhouse Gas (GHG) emissions. India’s pledge reflects its determination to protect local industries and navigate the implications of the EU’s carbon pricing mechanism.
Facts/Terms for UPSC Prelims
- Carbon Border Adjustment Mechanism (CBAM): Part of the European Union’s climate policy, CBAM aims to equalize the carbon costs of imported goods with those produced within the EU, requiring importers to report the quantity of imported goods and their embedded Greenhouse Gas (GHG) emissions.
- “Fit for 55 in 2030 package”: This is a comprehensive EU plan designed to achieve a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. It includes various policies and measures, with CBAM being one of them.
- Greenhouse Gas (GHG) Emissions: GHGs are gases like carbon dioxide and methane that trap heat in the Earth’s atmosphere, contributing to global warming and climate change. Measuring GHG emissions is crucial for assessing a product’s environmental impact.
- Importers: Entities or individuals responsible for bringing goods into a country from abroad. In the context of CBAM, importers must comply with carbon pricing and reporting requirements for imported products.
