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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: India has rejected the European Union's proposal for a carbon border adjustment mechanism (CBAM), labeling it as unfair and impractical for its economy
• The CBAM aims to impose tariffs on imports of high-carbon goods like steel and aluminum, starting January 1, 2026
🔭 The context: The EU's CBAM is designed to incentivize greener production by taxing imports based on their carbon footprint
• India argues that the policy would disproportionately impact developing countries with lower income levels, increasing domestic market costs
🌍 Why it matters for the planet: The dispute highlights the challenges of balancing global climate goals with economic disparities between developed and developing nations
• India, which aims for net-zero emissions by 2070, emphasizes the need for flexible emission-cutting targets under the Paris Agreement
⏭️ What's next: Ongoing technical negotiations between the EU and India continue, with potential implications for bilateral trade and a free trade agreement
• The deadlock could result in higher tariffs on Indian goods entering the EU market
💬 One quote: "Their suggestion is not practical... the solution they are offering doesn't work for a developing economy like India," said Ajay Seth, India's Economic Affairs Secretary
📈 One stat: The EU is India's second-largest export market, accounting for nearly $100 billion in exports in 2023
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