Exporting into a world with carbon tax

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

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