Although India and China have had a history of hostility due to border disputes for years, with China opposing India-supported decisions on international platforms and India criticizing Beijing in return, both nations have united over one decision made by the British.
At the UN Climate Summit (COP 29), the European Union proposed a Carbon Border Tax, which was openly opposed by India, China, and other developing countries. The EU attempted to include unilateral trade measures through this tax. Let’s explore how this tax could harm the economies of India, China, and other developing nations.
What is Carbon Border Tax?
This tax, especially on products imported from countries like India and China (such as iron, steel, cement, and aluminum), would be imposed by the European Union. The EU argued that this step would create a level playing field for domestically produced goods, while also helping to control carbon emissions from imported products.
However, developing countries have labeled this decision by the European Union as harmful. India, China, and other countries argued that the Carbon Border Tax would negatively impact their economies. They cited the UN climate rules, stating that no country should impose its carbon reduction strategies on others.
Also Read- India Ranks 105th in 2024 Global Hunger Index, Classified as ‘Serious’
What is COP29?
The main goal of COP29 (Conference of the Parties) is to bring together various nations to develop a joint plan to tackle global warming. It also includes provisions to offer financial assistance to developing countries to cope with the adverse effects of climate change. The conference has been held annually since 1995.
The United Nations Climate Change Conference 2024 (COP29) began on November 11 in Baku, Azerbaijan. It is expected that around 200 countries’ representatives, business leaders, climate scientists, journalists, and experts will participate in the event, which will run until November 22.