Q. Carbon Border Adjustment Mechanism (CBAM), recently seen in the news, is related to which organization?
Answer:
European Union
Notes: The Economic Survey noted the European Union's Carbon Border Adjustment Mechanism (CBAM) conflicts with the Paris Agreement's spirit. CBAM is an EU tariff on carbon-intensive products, ensuring imported goods pay for their carbon emissions, aligning their carbon price with domestic products. EU importers must buy carbon certificates based on embedded emissions. This encourages cleaner production globally by pricing carbon emissions fairly. CBAM aims to prevent undermining the EU's climate objectives.