• The European Union has proposed a policy called the Carbon Border Adjustment Mechanism to tax products such as cement and steel, which are extremely carbon intensive, with effect from 2026.
• BASIC, a group comprising Brazil, India, South Africa and China, large economies that are significantly dependent on coal, has for several years voiced common concerns and reiterated their right to use fossil fuels during their transition to clean energy.
• A carbon border tax is a tax on carbon emissions attributed to imported goods that have not been carbon-taxed at source.

Why?

• Imposing Carbon Levies: The measure is designed to protect European industries from competitors abroad who are not subjected to the same carbon levies.