UPSC Current Affairs
CARBON BORDER TAX
The BASIC group, comprising India, China, Brazil and South Africa, recently said in a statement that “unilateral measures and discriminatory practices, such as carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst… WHAT IS CARBON BORDER ADJUSTMENT TAX? A carbon border adjustment tax is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question.
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The BASIC group, comprising India, China, Brazil and South Africa, recently said in a statement that “unilateral measures and discriminatory practices, such as carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst… WHAT IS CARBON BORDER ADJUSTMENT TAX? A carbon border adjustment tax is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question.
The BASIC group, comprising
India, China, Brazil and South Africa, recently said in a statement that
“unilateral measures and discriminatory practices, such as carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst Parties, must be avoided”.
WHAT IS CARBON BORDER ADJUSTMENT TAX?
- A carbon border adjustment tax is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question. As a price on carbon, it discourages emissions.
- The carbon border tax involves imposing an import duty on a product manufactured in a country with more lax climate rules than the one buying it.
| EU’s STAND |
BASIC GROUP’s STAND |
· The EU has proposed a policy — The Carbon Border Adjustment Mechanism — to tax products such as cement and steel, that are extremely carbon intensive, wef 2026.
· EU claimed that the tax will benefit the environment and provide a level playing field to companies, those opposing it call the tax unfair and protectionist. |
· They say it puts the burden of climate compliance on developing countries, when historically, they have done much less to pollute the environment and yet are often more vulnerable to effects of climate change. |
- Prelims: Key facts, institutions, locations and terminology in the article.
- Mains: Connect the topic with Environment, Economy, Polity & Governance.
- Revision: Use the article headings to prepare concise notes and answer-writing points.
Test your understanding
Questions from this article
Prelims practiceWith reference to CARBON BORDER TAX, consider the following statements:
- The BASIC group, comprising India, China, Brazil and South Africa, recently said in a statement that “unilateral measures and discriminatory practices, such as carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst…
- WHAT IS CARBON BORDER ADJUSTMENT TAX?
- A carbon border adjustment tax is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
View answer
Answer: (d) 1, 2 and 3. All three statements are drawn from the article.
Mains practiceDiscuss the background, key issues and significance of CARBON BORDER TAX for India.
Answer in 250 words.
View answer approach
- WHAT IS CARBON BORDER ADJUSTMENT TAX?
- Background and context
- Key facts and institutional framework
- Significance and way forward
Frequently asked questionsFrequently asked questions
Why is Carbon Border Tax in the news?
The BASIC group, comprising India, China, Brazil and South Africa, recently said in a statement that “unilateral measures and discriminatory practices, such as carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst… WHAT IS CARBON BORDER ADJUSTMENT TAX?
What are the key facts about Carbon Border Tax?
A carbon border adjustment tax is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question. As a price on carbon, it discourages emissions. The carbon border tax involves imposing an import duty on a product manufactured in a country with more lax climate rules than the one buying it.
Why is Carbon Border Tax important for UPSC preparation?
The topic connects current developments with Environment, Economy, Polity & Governance and is relevant for both objective revision and analytical answer writing.