Topic: Conservation, environmental pollution and degradation, environmental impact assessment.
5. The European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM) can play a crucial role in addressing climate change. However, it must be designed and implemented with careful consideration of fairness, effectiveness, and broad acceptance. Examine. (250 words)
Difficulty level: Moderate
Reference: The Hindu
Why the question:
A concerning development for India is the European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM). The policy, which intends to tax carbon-intensive products coming into the EU from 2026, is divided into two phases, with the first phase (transitional phase) kicking in from October 1, 2023.
Key Demand of the question:
To write European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM) and its impact on India.
Directive word:
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Begin by giving context of European Union’s carbon tax.
Body:
First, write about concept of the carbon tax and rationale behind it – a tax levied on the carbon content of fuels, generally in the transport and energy sector. Carbon taxes are a form of carbon pricing. The term carbon tax is also used to refer to a carbon dioxide equivalent tax, the latter of which is quite similar but can be placed on any type of greenhouse gas or combination of greenhouse gases, emitted by any economic sector.
Next, write about the limitations of the above and how it impacts developing countries like India.
Conclusion:
Conclude with a way forward.
