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Topic: Conservation, environmental pollution and degradation, environmental impact assessment.
7. By explaining the features of European Union’s new Green House Gas(GHG) emission laws, examine its implications on Indian industry. (250 words)
Reference: Indian Express
Why the question:
The article explains the implications of EU’s new GHG emissions law for Indian industry.
Key Demand of the question:
By explaining the features of European Union’s new Green House Gas(GHG) emission laws, examine its implications on Indian industry.
Directive:
Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Start with the context of the question. The European Union introduced new legislation, Fit for 55, to cut its GHG emissions by 55 per cent by 2030 and to net zero by 2050.
Body:
Explain that the EU has had a carbon emission trading system since 2005, with a current market price of 50 euros per ton of carbon. With Fit for 55, the EU will bring more sectors into this trading scheme and tighten its allocation of permits. The EU’s carbon price is likely to go up as a result, making its domestic products more expensive than imports from countries that do not have such rules. The new CBAM is meant to level the playing field between domestic and imported products.
Discuss that it opens new markets for Indian industry, for example for electric vehicles. However, it also introduces a potentially adverse policy called the carbon border adjustment mechanism (CBAM).
Suggest impact on India.
Conclusion:
Conclude with way forward.
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