- According to European think-tank Sandberg, Indian iron and steel exporters face the highest Carbon Border Adjustment Mechanism (CBAM) fees to the EU, estimated at €301 million.
- CBAM is the European Union's tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
- CBAM is one of the elements of the EU Green Deal, the goal of which is to reduce GHG emissions by 55% by 2030.
- CBAM is aimed at equalizing the price of carbon paid for EU products operating under the EU Emissions Trading System (ETS) and imported goods.
- It refers to a phenomenon where a EU manufacturer moves carbon-intensive production to countries outside the region with less stringent climate policies. Its primary objective is to avert ‘carbon leakage’. Read More
India Faces Highest CBAM Levy Among EU Trade Partners
Context
Carbon Border Adjustment Mechanism (CBAM)