Which of the following statements about ‘carbon tax’ is/are correct?

It is an import duty based on the amounts of carbon emissions.

BASIC countries have proposed this tax at COP27.

The European Union proposed the Carbon Border Adjustment Mechanism (CBAM) to tax high-carbon commodities beginning in 2026.

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Question

BASIC countries have emphasized the need of avoiding carbon border taxes, which could promote market distortion and worsen the trust deficit among countries at COP27.
A carbon border tax is an import duty based on the amount of carbon emissions produced by the goods in question. E.g., using it EU can impose import duty on Cement export by India as cement production is highly carbon-intensive.
It discourages emissions as a carbon price. It has an impact on production and exports as a trade-related measure.
The BASIC countries are a bloc of four large newly industrialised countries - Brazil, South Africa, India and China, formed in 2009 at the Copenhagen climate summit.
The European Union (EU) proposed the Carbon Border Adjustment Mechanism (CBAM) in 2021, which would tax high-carbon commodities like cement and steel beginning in 2026.

GKToday Admin · Accepted Answer

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BASIC countries have emphasized the need of avoiding carbon border taxes, which could promote market distortion and worsen the trust deficit among countries at COP27.
A carbon border tax is an import duty based on the amount of carbon emissions produced by the goods in question. E.g., using it EU can impose import duty on Cement export by India as cement production is highly carbon-intensive.
It discourages emissions as a carbon price. It has an impact on production and exports as a trade-related measure.
The BASIC countries are a bloc of four large newly industrialised countries - Brazil, South Africa, India and China, formed in 2009 at the Copenhagen climate summit.
The European Union (EU) proposed the Carbon Border Adjustment Mechanism (CBAM) in 2021, which would tax high-carbon commodities like cement and steel beginning in 2026.

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