UPSC Prelims Marathon Quiz

Statement 1 is correct. Under the CBAM, imports of certain carbon-intensive products like cement, iron and steel, electricity will have to bear the same economic costs borne by EU producers under the Emissions Trading System (ETS).

Statement 2 is incorrect. When a carbon price has been paid for the imported products in their country of origin, a reduction can be claimed.

Statement 3 is incorrect. India has voiced its apprehensions regarding the EU Carbon Border Adjustment Mechanism and asserted that it may act as a trade impediment and could breach WTO regulations. Nevertheless, India remains committed to reducing its carbon emissions with a goal to achieve net-zero emissions by 2070.