With reference to the European Union's climate policies and their global impact,
consider the following statements:
1. The CBAM transition phase from 2023-2025 requires importers to pay for
carbon emissions without reporting requirements.
2. Developing countries argue that EU's deforestation rules inadequately
recognize their national efforts to combat forest loss.
3. The geolocation data requirement under EU's deforestation rules is criticized
for potentially disadvantaging small-scale farmers in developing nations.
4. India's Finance Minister has termed the CBAM as a trade barrier that could
hinder developing countries' net-zero commitments.
Which of the statements given above are correct?
Explanation: Statement 1 is incorrect. During the CBAM transition phase (2023-
2025), importers are required to report the carbon emissions of their goods
without paying the adjustment. Payment begins from 2026. Statements 2, 3, and
4 are correct. Developing countries argue that EU's deforestation rules don't
adequately recognize their national efforts. The geolocation data requirement is
criticized for potentially disadvantaging small-scale farmers in developing nations
due to compliance costs. India's Finance Minister has indeed termed the CBAM
as a trade barrier that could hinder developing countries' progress towards their
net-zero commitments.
Explanation: Statement 1 is incorrect. During the CBAM transition phase (2023-
2025), importers are required to report the carbon emissions of their goods
without paying the adjustment. Payment begins from 2026. Statements 2, 3, and
4 are correct. Developing countries argue that EU's deforestation rules don't
adequately recognize their national efforts. The geolocation data requirement is
criticized for potentially disadvantaging small-scale farmers in developing nations
due to compliance costs. India's Finance Minister has indeed termed the CBAM
as a trade barrier that could hinder developing countries' progress towards their
net-zero commitments.