Q1. From October 1, 2023, which organisation has introduced the Carbon Border Adjustment Mechanism (CBAM)?
- (a) United Nations
- (b) BRICS
- (c) European Union
- (d) International Court of Justice
Answer & solution
Answer: (c) European Union
The Carbon Border Adjustment Mechanism (CBAM) was introduced by the European Union (EU) from October 1, 2023, as part of its European Green Deal. CBAM is a carbon pricing instrument that places a carbon price on imports of certain goods from countries outside the EU where less ambitious climate policies apply. It aims to prevent 'carbon leakage' (where production shifts to countries with less stringent climate rules). Currently it covers sectors like iron, steel, cement, aluminium , fertilizers, electricity, and hydrogen.
The United Nations, BRICS, and International Court of Justice have not introduced CBAM.