Exporting into a world with carbon tax

Policymakers should help embed India in the growing presence of this tax worldwide

Akshay JaitlyAjay Shah
Carbon tax

Illustration: Ajay Mohanty

There is concern in India as the tangible implementation of the European “Carbon Border Adjustment Mechanism” (CBAM) kicks in on October 1 this year. Critics of this European action view this as protectionism. What is more important are detailed Indian responses at policy level and firm level.
Once Donald Trump got the US out of the Paris accord in 2017, many countries shifted gear to making progress on reducing carbon emission on their own. In Europe, dramatic moves have been made, by which governments are forcing decarbonisation. As an example, in Germany, per capita annual carbon dioxide emission has come down from the peak of 14.3 tonnes in 1979 to 8.1 tonnes in 2021. At its peak, in 1897, Germany accounted for 17 per cent of the world’s emission; in 2021 it was down to 1.82 per cent.
Decarbonisation in the European Union (EU) produces a global public good. As an example, it fosters social stability in coastal India. It comes
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Apr 30 2023 | 10:36 PM IST

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