In News: In COP 27 of UNFCCC, European Union (EU) has proposed a policy- called the ‘Carbon Border Adjustment Mechanism’.
Carbon Border Adjustment Mechanism:
A carbon border adjustment tax is a duty on imports based on the amount of carbon emissions that result from the production of the products in question. It is imposed to discourage emissions.
It aims to tax extremely carbon intensive products like cement and steel with effect from 2026.
India, China, Brazil, South Africa, is opposed to this proposal, stating that carbon border taxes could result in market distortion besides aggravating the already widened trust deficit amongst parties.
India’s views: All countries are entitled to their fair share of the global carbon budget and must stay within this in their cumulative emission.
Green protectionism: If designed unilaterally, carbon tax may become a protectionist device and inspire a few countries to unduly shield local industries from foreign competition.
Other initiatives at COP27:
Opening of Biodiversity Day at COP27 on “Connecting Climate and Biodiversity”
Launch of the ENACT initiative for nature-based solutions, along with Germany and IUCN
Red Sea Initiative for Red Sea’s corals was launched by the Egyptian government in partnership with the United States, through USAID, UNDP, and the Global Fund for Coral Reefs .
For the Adaptation Fund and the climate-vulnerable developing countries, contributors announced nearly 172 million dollar in new pledges.
Africa Just & Affordable Energy Transition Initiative (AJAETI) initiative aims to provide all Africans with access to clean energy, whilst meeting the energy requirements for Africa’s economic development.
