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UPSC CAPF AC 2024 Paper 1 · Question 120

Question 120 of the UPSC CAPF (AC) 2024 Paper I (4 August 2024). Try it first, then open the answer and explanation.

  1. CAPF 2024 · P-I · Q120 · Indian Economy · External Sector & Trade

    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.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2

    CBAM (कार्बन बॉर्डर एडजस्टमेंट मैकेनिज्म) के संबंध में निम्नलिखित में से कौन-सा/कौन-से कथन सही है/हैं? 1. ये व्यापार नीति साधनों का एक उभरता हुआ समूह है जो कम कठोर जलवायु नीति वाले क्षेत्राधिकार से कठोर जलवायु नीति वाले क्षेत्राधिकार में कार्बन-गहन आर्थिक गतिविधि की अनुमति देता है 2. इनका उद्देश्य जलवायु नीतियों की पर्यावरणीय प्रभाविता को बढ़ाना है नीचे दिए गए कूट का प्रयोग कर उत्तर चुनिए।

    1. केवल 1
    2. केवल 2
    3. 1 और 2 दोनों
    4. न तो 1, न ही 2
    Show answer

    Answer: (2) 2 only

    उत्तर: (2) केवल 2

    A CBAM (such as the EU's, whose transitional phase began in October 2023) puts a carbon price on imports of carbon-intensive goods to prevent "carbon leakage", i.e. the shift of carbon-intensive activity from a jurisdiction with stringent climate policy to one with less stringent policy. Statement 1 is therefore wrong on two counts: CBAMs are meant to prevent, not allow, such movement, and leakage runs from the stringent to the less stringent jurisdiction, not the other way round; statement 2 is correct because curbing leakage makes climate policies environmentally more effective.

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