ANNOUNCEMENTS
Because of the increasing chances for international trade,national and regional economies have been merged into a massive global economy as a result of globalization creating a number of growth and dynamic development prospects. Governments all across the world have recently liberalised their financial and trade sectors, which has increased the flow of products, capital, and services within nations and benefited economies. However, this has also led to the environment on Earth becoming worse. The situation has gotten so bad that natural disasters brought on by climate change are now common. A potential solution to anthropogenic climate change is net zero emission, Hence, many countries are pledging to achieve carbon neutrality by the middle of this century. One of the pioneers to initiate this achievement is the European Union. It aspires to be the first region in the world to commit to net zero emissions. Its "European Union Green Deal (EUGD)" carbon neutrality policy plan, among other elements, calls for taxing imported goods depending on the amount of carbon used in production. This is also called as "Carbon Border Adjustment Mechanism". The ‘Adjustment Mechanism’ recommends taxing the ‘difference’ between the amount of carbon that is present in both ‘domestic’ and ‘imported’ commodities. Predictions have been made that putting a ‘price on carbon’ consumption will motivate countries to embrace cleaner manufacturing methods while also preventing ‘carbon leakages’ to other nations and relaxing the environmental standards. This report aims to comprehend the idea and discuss CBAM. Additionally, it seeks to analyze how CBAM can affect India's ‘carbon-intensive and trade-exposed’ (CITE) sectors.
