European Union’s Carbon Border Adjustment Mechanism And concern of India

 It is apparent that through CBAM, the EU wants to intimidate non-EU nations into adopting its self-proclaimed position as climate leader

In this article : 

1. Protectionist idea by EU 
2. what is CABM
3. How India will be effected
4. How other countries will be effected 
5. Statement of India 
6. India says for EBA 

 Innovative protectionist ideas

ग़रीब और अमीर देश क्या सोचते हैं ?

Protectionism is a threat to the collaboration required between the developed and developing world in addressing climate issues.

 Innovative protectionist ideas example

such as the 

1. European Union’s Carbon Border Adjustment Mechanism (EU-CBAM), the 
2. Corporate Sustainability Due Diligence Directive, 
3. and the EU Deforestation Regulation, 
4. have led to concerns in developing nations. India has criticised the EU-CBAM, in particular, as being “arbitrary”. 

A ‘discriminatory’ tool

What is  CBAM ??

1 CABM WILL ensure that imported products bear a carbon emission cost comparable to the cost imposed on goods produced within the EU. 

2 Exporters will be mandated to 

• provide information on the quantity and emissions of their goods 
• buy certificates to match those emissions. 

3 start date of CABM

The definite phase of the CBAM will enter into force on January 1, 2026. 

CABM से भारत किस प्रकार प्रभावित होगा ??

1 This may pose significant risks to India’s international trade. 

2 The EU comprises 20.33% of India’s total merchandise exports, of which 25.7% are affected by CBAM. 

3 During the last five fiscal years, iron and steel have accounted for 76.83% of these exports, followed by aluminium, cement, and fertilizers.

4 STATEMENT OF INDIA

In recent editions of the Conference of the Parties (COPs), India has said that CBAM is “discriminatory” 

called on developing countries to establish a coordinated response to what it considers as an unjust transfer of responsibilities

दूसरे देश किस प्रकार से प्रभावित होने वाले हैं??

1 It is important to recognise that not all developing economies share the same economic aspirations as India, nor will they be equally affected by the impacts of climate change. 

. 2 Issues related to multilateral and bilateral trade and cultural ties between developed and developing economies influence the tone of their arguments.

 FORMULA : The current production-based accounting principle 

practiced under the United Nations Framework Convention on Climate Change (UNFCC) includes the emissions resulting from the production of exportable commodities within the emission inventory of the exporting nation. 

The exporting nation is held accountable for the reduction of these emissions, even though these products are not consumed within its domestic market. 

As a result, many developing economies with less stringent emission reduction measures are accused of climate change when they export more.

The proposed

हमारे कौन कौन से मुद्दे हैं ??

FIRST  : GIVING LESS TIME FOR PREPARATION

1 सीएबीएम की तैयारी के दौरान, यूरोपीय संघ ने 2020 तक ग्रीनहाउस गैस (जीएचजी) उत्सर्जन को 1990 के स्तर की तुलना में 20% कम करने का लक्ष्य निर्धारित किया; 

इसे 2008 में यूरोपीय संघ जलवायु कार्रवाई और नवीकरणीय ऊर्जा पैकेज में रेखांकित किया गया है। 

2 the European Green Deal 

was unveiled in 2019, extending the emission reduction target to 55% below the 1990 levels in a Fit for 55 Package. 

Does the CBAM given developing economies a Good  time to adapt?

SECOND : EMPOWERMENT. 

1 CABM कमाई का पैसा कहां खर्च करेगा यूरोपीय यूनियन??

The EU has decided to keep the revenues generated from the CBAM as its resources, which will be used to fund the NextGenerationEU recovery tool and operate the CBAM. 

additional money generated by CBAM for 2030 is estimated to be €5 to €14 billion annually. 

Is it appropriate for the EU not to share this revenue with non-EU trading partners? 

Doing so may contribute to capacity building and technology transfer in developing economies.

Third : issue of quantifying emission reduction responsibilities ....

India says for EBA 

for an alternative called Equity-based Accounting (EBA) of Nationally Determined Contributions, which emphasises a 

• collective obligation for emission reductions among trade partners 
• based on the ideas of horizontal intra-generational equity and vertical inter-generational equity.
•  In the context of the EU-CBAM, India can introduce the concept of EBA to the developing world concerning retaliation measures. 

Using the EBA

 a formula can be proposed to calculate the tariff base on imports from the EU, which considers factors such as relative 

• per capita GDP, 
• relative per capita emissions, 
• relative gains from trade, 
• and relative avoided emissions through trade. 

Common but Differentiated Responsibilities and Respective Capabilities

Even the PBA adheres to the principle of Common but Differentiated Responsibilities and Respective Capabilities, which is significantly compromised under the CBAM framework. CBAM does not acknowledge compensatory justice or distributive justice. 

Consequently, the allocation of emission responsibilities is not equitably assigned to countries based on their historical contributions to climate change or their capacity to mitigate its effects. 

It is apparent that through CBAM, the EU wants to intimidate non-EU nations into adopting its self-proclaimed position as climate leader.

Source the hindu