{"id":19176,"date":"2025-02-27T08:48:17","date_gmt":"2025-02-27T03:18:17","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=19176"},"modified":"2025-04-05T15:46:37","modified_gmt":"2025-04-05T10:16:37","slug":"cbam","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/cbam\/","title":{"rendered":"Carbon Border Adjustment Mechanism (CBAM)"},"content":{"rendered":"<h2>Carbon Border Adjustment Mechanism Latest News<\/h2>\n<p>The European Union recently acknowledged India\u2019s \u201cspecific concerns\u201d about implementing the Carbon Border Adjustment Mechanism (CBAM).\u00a0<\/p>\n<h2>About Carbon Border Adjustment Mechanism<\/h2>\n<ul>\n<li>It is a <strong>European Union (EU) tariff on carbon-intensive products.<\/strong><\/li>\n<li>It is a new EU instrument <strong>for preventing carbon leakage,<\/strong> that is, the shifting of the production of goods to non-EU countries where there is a lower or no carbon cost associated with their production.\u00a0<\/li>\n<li><strong>Purpose:<\/strong> To <strong>put a fair price on the carbon emitted during the production of <\/strong>carbon-intensive<strong> goods<\/strong> that are <strong>entering the EU<\/strong> and to <strong>encourage cleaner industrial production in non-EU countries.<\/strong><\/li>\n<li>By confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods imported into the EU, the CBAM will <strong>ensure the carbon price of imports is equivalent to the carbon price of domestic production<\/strong>, and that the EU&#8217;s climate objectives are not undermined.<\/li>\n<li><strong>Imports <\/strong>mean any imports to the EU from outside the EU, <strong>including e.g., imports of goods ordered online and imports of gifts.\u00a0<\/strong><\/li>\n<li>The CBAM is designed to be <strong>compatible with WTO rules.<\/strong><\/li>\n<li><strong>Carbon Certificates:<\/strong>\n<ul>\n<li>If implemented as planned, <strong>EU importers<\/strong> will <strong>have to buy carbon certificates corresponding to the carbon price<\/strong> that would have been paid in the EU if the goods had been produced locally.<\/li>\n<li>The price of the certificates would be <strong>calculated according to the auction prices in the EU carbon credit market.<\/strong><\/li>\n<li>The number of certificates required would be defined yearly by the quantity of goods and the embedded emissions in those goods imported into the EU.<\/li>\n<li><strong>EU importers will declare the emissions embedded <\/strong>in their imports and <strong>surrender the corresponding number of certificates<\/strong> each year.<\/li>\n<li><strong>If importers can prove<\/strong> that a <strong>carbon price has already been paid<\/strong> during the production of the imported goods, the <strong>corresponding amount can be deducted.<\/strong><\/li>\n<li>Companies in countries with a domestic carbon pricing regime equivalent to the EU\u2019s will be able to export to the EU without buying CBAM certificates.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Implementation Timeline:<\/strong>\n<ul>\n<li>CBAM will <strong>apply in its definitive regime from 2026,<\/strong> while the current transitional phase lasts between 2023 and 2025.\u00a0<\/li>\n<li>The CBAM <strong>commenced <\/strong>in its <strong>transitional phase as of 1 October 2023.\u00a0<\/strong><\/li>\n<li><strong>Only reporting obligations<\/strong> arise <strong>during the transitional period,<\/strong> and financial obligations apply from 2026.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Coverage<\/strong>: CBAM will <strong>initially cover <\/strong>severalspecific products in some of the most <strong>carbon-intensive sectors<\/strong> at risk of &#8220;carbon leakage&#8221;: <strong>iron and steel <\/strong>(including some downstream products such as nuts and bolts), <strong>cement, fertilizers, aluminium, electricity, and hydrogen.<\/strong><\/li>\n<\/ul>\n<h2>Carbon Border Adjustment Mechanism FAQs<\/h2>\n<p><strong>Q1<\/strong>. What countries are against CBAM?<\/p>\n<p><strong>Ans<\/strong>. The biggest opponents of CBAM are considered to be the BASIC countries \u2013 Brazil, South Africa, India and China.\u00a0<\/p>\n<p><strong>Q2<\/strong>. What products are affected by CBAM?<\/p>\n<p><strong>Ans<\/strong>. Currently, CBAM applies to aluminium, cement, electricity, fertiliser, hydrogen, iron and steel.<\/p>\n<p><strong>Q3<\/strong>. Is CBAM a tariff?<\/p>\n<p><strong>Ans<\/strong>. It is a fee or tariff levied on imported goods based on the greenhouse gases emitted during their production.<\/p>\n<p><strong>Source<\/strong>: <a href=\"https:\/\/www.thehindu.com\/business\/eu-ready-to-address-specific-concerns-of-india-on-carbon-tax-levy-on-imports\/article69268124.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Carbon Border Adjustment Mechanism (CBAM) is a European Union (EU) tariff on carbon-intensive products.<\/p>\n","protected":false},"author":5,"featured_media":19177,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-19176","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=19176"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/19176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/19177"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=19176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=19176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=19176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}