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Indian and Chinese negotiators astatine COP29 argued that CBAM violated respective provisions of existing planetary regulations. (AP)
Why has the EU introduced CBAM? What are the concerns of BASIC countries connected CBAM? What is the rule of CBDR-RC? Take a look astatine the indispensable concepts, terms, quotes, oregon phenomena each time and brushwood up your knowledge. Here’s your cognition nugget for today.
Knowledge Nugget: Carbon Border Adjustment Mechanism (CBAM)
Subject: Environment
(Relevance: Carbon taxation is 1 of the blistery topics for UPSC. In the past, it has asked questions connected the result of large clime summits similar the Kyoto Protocol and COP 15. In this regard, with each the debates going astir CBAM, it becomes important for you to cognize what it is and wherefore India is objecting to it. )
Why successful the news?
China, India, and different BASIC state partners Brazil and South Africa person been complaining against the Carbon Border Adjustment Mechanism (CBAM) introduced by the EU past year. On Friday, China and India confronted the European Union (EU) and warned that unilateral commercialized measures could beryllium detrimental to multilateral cooperation.
Key Takeaways:
1. On the opening time (11th November) of the COP29 meeting, China, connected behalf of the BASIC countries, had moved a connection to see a treatment connected “unilateral restrictive commercialized measures” — without mentioning CBAM — successful the ceremonial docket of the COP meeting. The EU had powerfully opposed the move, and decisions astatine COP are taken lone by consensus. The COP presidency had past referred the substance for informal statesmanlike consultations — the archetypal circular was held Friday morning.
| COP |
| COP oregon Conference of Parties is the yearly gathering of the members of the UN Framework Convention connected Climate Change (UNFCCC) — an planetary agreement, signed successful 1992, that has provided a ground for clime negotiations. This year, COP29 is organised successful Baku nether the presidency of Azerbaijan from 11 November to 22 November. |
2. The BASIC radical said CBAM unfairly targeted processing countries. Chinese and Indian negotiators besides argued that it violated respective provisions of existing planetary regulations related to some commercialized and clime change. The EU, however, denied that CBAM was aimed astatine immoderate peculiar radical of countries oregon was discriminatory.
| BASIC Countries |
| The BASIC countries — a grouping of Brazil, South Africa, India, and China — were formed arsenic the effect of an statement signed by the 4 countries connected November 28, 2009. BASIC is 1 of respective groups of nations moving unneurotic to combat clime alteration and transportation retired negotiations wrong the UNFCCC. |
3. The EU came up with the Carbon Border Adjustment Mechanism successful 2021 which was rolled retired successful 2023. The European Commission’s website describes it thus, “Designed successful compliance with World Trade Organization (WTO) rules and different planetary obligations of the EU, the CBAM strategy volition enactment arsenic follows: EU importers volition bargain c certificates corresponding to the c terms that would person been paid, had the goods been produced nether the EU’s c pricing rules. Conversely, erstwhile a non-EU shaper tin amusement that they person already paid a terms for the c utilized successful the accumulation of the imported goods successful a 3rd country, the corresponding outgo tin beryllium afloat deducted for the EU importer.”
4. In simple, CBAM taxes definite products coming successful from different countries connected the ground of their emissions footprint successful their accumulation process. For instance, if the imported alloy was produced done a process that entailed higher emissions than the emissions standards for that merchandise successful Europe, it would beryllium taxed.
5. CBAM allows industries successful Europe to stay competitory portion continuing to support precocious biology standards. It prevents these industries from relocating their accumulation to countries wherever the accumulation mightiness beryllium inexpensive owing to little strict emanation norms, a concern described arsenic c leakage. In the process, it hopes to lend to reducing planetary emissions.
6. However, it hurts the export competitiveness of processing countries specified arsenic China and India. The processing countries constituent retired that CBAM overlooks the “differentiation” embedded successful the planetary clime architecture that allows them to beryllium treated otherwise than the developed nations.
CBAM taxes definite products coming successful from different countries connected the ground of their emissions footprint successful their accumulation process.
7. Industries successful developed economies, with emissions standards comparable to the EU, basal to payment from a CBAM-like measurement since their products would not beryllium taxed and, hence, go much competitory successful the European market. CBAM, thus, tin person the nett effect of helping industries successful the developed satellite portion putting those successful processing countries astatine a disadvantage.
8. A survey by the Asian Development Bank Climate published successful February this twelvemonth showed that measures specified arsenic CBAM would apt person minimal interaction connected reducing greenhouse state emissions compared to immoderate different emissions trading options that are available.
BEYOND THE NUGGET: Common But Differentiated Responsibilities and Respective Capabilities’ (CBDR-RC)
1. The UNFCCC came into being successful 1994, with the mandate to find a solution to the occupation of clime change. It divided the satellite into 2 neat groups — countries that needed to chopped GHG emissions and those that didn’t. The 37 countries that were expected to instrumentality emanation cuts were named successful Annexure I of the Convention and came to beryllium famously known arsenic ‘Annex-I’ countries. The remainder of the satellite was the ‘non-Annex countries’.
2. Annex-I countries were affluent and much capable, and frankincense amended placed to instrumentality emanation cuts, which could not beryllium achieved without restraining economical enactment successful immoderate way. Also, it wasn’t arsenic if the non-Annex countries needed to bash nothing. The UNFCCC realised, and stressed, that clime alteration was a planetary problem, and needed to beryllium tackled with planetary effort. Once emitted, GHGs cannot beryllium restricted to a peculiar state oregon portion and added to the planetary attraction successful the atmosphere.
3. Non-Annex countries excessively were, therefore, expected to enactment connected clime alteration — taking adaptation measures and acting swiftly to determination to a low-carbon maturation trajectory. However, mandatory emanation cuts were thing they were expected to beryllium exempt from, astatine slightest successful the adjacent term.
4. This led to the constitution of the rule of differentiation, done the look ‘Common But Differentiated Responsibilities and Respective Capabilities’ (CBDR-RC), successful the UNFCCC, recognising the information that portion each countries stock a work to code clime change, their obligations disagree according to their capacities and circumstances.
(Source: What is c borderline tax, which India opposed astatine COP27, Why India and China person pushed against clime change-related commercialized measures astatine COP29, From CBDRs to INDCs: Acronyms connected the roadworthy to averting clime alteration disaster)
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