16th November 2021 (5 Topics)
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EU proposed Carbon Border Tax
What is the rationale behind the Carbon border adjustment tax being proposed by some European nations? Why is India opposing it? (250 words)
Approach:
- Introduce by describing the concept of externality and carbon tax
- Elaborate on the logic behind carbon border tax, use illustration/flow chart if possible
- Discuss how the proposal will harm and India and why India is opposing it
- Way Forward / Conclusion
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