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 climati

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Q: 109 (CAPF/2024)
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 climatic policy to a jurisdiction having stringent climatic policy
2. These are meant to increase the environmental effectiveness of climate policies

question_subject: 

Ecology

question_exam: 

CAPF

The first statement is incorrect because CBAMs are designed to prevent the movement of carbon-intensive activities to jurisdictions with less stringent climate policies, not to facilitate such movement. The second statement is correct as CBAMs aim to enhance the environmental effectiveness of climate policies by ensuring that imported goods reflect the carbon costs, thus encouraging cleaner production practices globally.