Which of the following statements about CBAM (Carbon Border Adjustment Mechanisms) is/are correct?
1. These are an emerging set of trade policy tools to allow movement of carbon-intensive economic activity from a jurisdiction having less stringent climate policy to a jurisdiction having stringent climate policy
2. These are meant to increase the environmental effectiveness of climate policies
Select the answer using the code given below:
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Show answer
A carbon border adjustment exists to stop carbon-intensive activity from moving out of a strict jurisdiction, not to help it move, and its aim is to make climate policy work better.
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