3rd January 2026

Explanation – 

The European Union has begun implementing the world’s first carbon tax under the Carbon Border Adjustment Mechanism (CBAM) from January 1. The move has drawn criticism from developing countries, including India, as it imposes a levy on carbon-intensive imports entering the EU. What CBAM Covers? CBAM applies a carbon-related charge on imports from: Power sector Energy-intensive industries such as cement, steel, aluminium, oil refining, paper, glass, chemicals, and fertilisers The mechanism targets goods originating from countries with lower environmental standards than the EU. Importantly, EU lawmakers retain the power to expand the product list in future. Impact on India and Developing Countries — India’s exports to the EU are dominated by steel, iron, and aluminium, making them particularly vulnerable to CBAM-related costs. Beyond India, the measure is expected to raise trade barriers for many developing economies. A similar carbon border regulation is expected to be implemented by the United Kingdom this year, compounding pressures that already exist due to high US tariffs on metals imposed by the United States. 

Explanation – 

Close Quarter Battle (CQB) Carbine (the 56 x 45 mm CQB Carbine) is an indigenously designed, developed and manufactured (IDDM) compact firearm. It has been designed by DRDO’s Armament Research & Development Establishment (ARDE), Pune, and is being manufactured by Bharat Forge Ltd (a Pune based Indian multinational). CQB carbines are compact, lightweight weapons designed specifically for urban warfare, close-range engagements and counter-terrorism Their reduced size compared to standard rifles offers enhanced manoeuvrability in confined spaces whilst maintaining operational effectiveness. It has an effective range of 200 meters. The weapon also uses a 30-round curved magazine to ensure reliable feeding during rapid fire. It can fire both NATO-standard and INSAS ammunition. 

Explanation – 

Bulgaria is located in the south eastern region of the European continent, occupying the eastern part of the Balkan Peninsula. Bordering Countries — It is bordered by Romania, Turkey, Greece, Macedonia and Serbia. Maritime Border — It is bounded by the Black Sea in the east. Capital City — Sofia Geographical Features of Bulgaria — Mountain Ranges: The Balkan Mountains cut across the central part of the country, while the Rhodope Mountains run through southern Bulgaria, along its border with Greece. Highest Point: Musala Mt, located in the Rila Mountains. Major Rivers: Major rivers include the Danube River, Iskur, Maritsa, Struma, Tundzha and Yantra rivers. Climate: Most of Bulgaria has a moderate continental climate, which is tempered by Mediterranean influences in the south. Natural Resources: Bauxite, Copper, lead, zinc, coal etc. 

Explanation – 

Taxation on Tobacco and Sin Goods in India - Sin goods such as tobacco, pan masala, and alcohol are taxed heavily in India due to their adverse public health and social impacts. Tobacco taxation serves a dual policy purpose: discouraging consumption through higher prices and generating revenue for public expenditure, particularly in health and social security. Structure of Tobacco Taxation in India - India follows a multi-layered taxation framework for tobacco products, involving — Goods and Services Tax (GST) Central Excise Duty Cess (earlier GST Compensation Cess, now replaced for tobacco) Under GST, tobacco products have always been placed in the highest tax slabs due to their classification as demerit goods. However, despite high nominal tax rates, tobacco products, especially cigarettes, remained relatively affordable for consumers over the past decade. 

Explanation – 

CBAM is a policy proposed by the European Union (EU) to address carbon leakage. CBAM aims to prevent businesses from relocating production to countries with less stringent emission rules. It imposes a carbon tax on imports from countries with less stringent climate policies. CBAM aims to ensure that the carbon cost is accounted for in imported goods. CBAM aims to equalise the carbon cost of imported goods with that of goods produced within the EU. The mechanism seeks to create a level playing field. CBAM covers a range of sectors including cement, iron, steel, aluminium, fertilisers, and electricity.