Q2 · UPSC current affairs · 8 September 2026 · News · UK Recognition of India Carbon Credit Trading Scheme CBAM

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With reference to the Carbon Border Adjustment Mechanism (CBAM), consider the following:1.It is a duty imposed on carbon-intensive imports to prevent carbon leakage.2.It ensures foreign producers pay an equivalent carbon price to domestic industries.Which of the statements given above is/are correct?

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (c) Both 1 and 2

Explanation

Both statements are correct definitions and descriptions of the Carbon Border Adjustment Mechanism (CBAM) regulations and objectives as outlined in international trade contexts.

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