India's Projected GDP Impact from CBAM and Recommendations for the EU

Wednesday, 17 July 2024, 18:22

A recent report predicts that India will experience a **0.05% decrease** in its GDP due to the **Carbon Border Adjustment Mechanism (CBAM)** implemented by the European Union. In response to this economic impact, the report suggests that India should impose a **'historical polluter tax'** on the EU to mitigate the effects. This proposal aims to address the financial repercussions for developing countries while promoting equitable climate policies.
Deccanherald
India's Projected GDP Impact from CBAM and Recommendations for the EU

Impact of CBAM on India's GDP

According to a recent report, India's GDP is set to decline by 0.05% due to the European Union's Carbon Border Adjustment Mechanism (CBAM).

Recommendations for Policy Change

  • India should consider imposing a 'historical polluter tax' on the EU.
  • This tax is intended to address the financial burden placed on developing countries.
  • The goal is to create a more balanced approach to climate responsibilities.

The introduction of such a tax could help mitigate the potential decline in GDP and foster a sense of fairness in international climate policies.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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