Unilateral carbon pricing

India needs to work on carbon border tariffs

The European Union has reached an agreement on the Carbon Border Adjustment Mechanism or CBAM, which it defines as a “tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU” and which many other countries define as a carbon border tariff. The CBAM will impose a carbon price on the “embedded” emissions in goods that enter the EU. It is the first such unilateral measure attempting to force carbon pricing into the international trading system, but it is unlikely to be the last. India has traditionally opposed attempts to