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Implications of the EU’s “Carbon Border Tax” for the WTO and developing countries



Several nations have implemented measures to reduce emissions, including carbon pricing, to reach their commitments under the Paris Agreement. Carbon pricing usually takes place in one of two ways. The first is Emission Trading Schemes (ETS), which set a limit on the amount of greenhouse gas emissions allowed in specific industries. The second is government-imposed carbon taxes, which are established by the government rather than by market forces.

Scope of Carbon Border Adjustment Mechanism 

CBAM will impose a “carbon price” on commodities imported from nations that do not have as strict carbon pricing policies as the EU. Only authorized declarants would be able to import such goods under the proposal, and they would be required to file CBAM statements annually representing the Greenhouse Gas Emissions embedded in the imported goods. These certificates would be priced in line with EU ETS allowances. Nations that can establish an equivalent carbon pricing mechanism can engage in agreements with the EU for exclusions from the CBAM.


Members are prohibited from discriminating amongst their trading partners under Article I:1 of the General Agreement on Tariffs and Trade, 1994 (GATT). Goods having a lesser carbon impact are still “like items” and must be treated similarly.

If a country has made steps to cut carbon emissions but not in the way the EU prefers, they may be treated less favourably under CBAM. From the standpoint of WTO norms, this could raise more questions.

CBAM proposes that the number of CBAM certificates issued for imported items be reduced to the degree that free allowances are still supplied to EU domestic industry. A substantial number of industries previously covered by the EU’s ETS are being given free carbon emission allowances. Both of these issues violate the World Trade Organization’s (WTO) standards of fair and non-discriminatory trade.

Possible Justifications

Article XX may provide some rationale for CBAM’s proposal to treat items originating in various nations differently based on their carbon footprint. CBAM could be justified by the fact that it exempts actions from being considered violations if they are based on domestic policy purposes such as the protection of human, animal, and plant life.

According to Article XX of the CBAM, it should not be used as “a means of arbitrary or unjustified discrimination between countries where the same conditions prevail.”

The implications

A carbon border adjustment mechanism could exacerbate protectionism because border carbon adjustments are so new, there is no evidence to evaluate their performance, and no other country currently has a national equivalent. As manufacturers aim to pass on the “cost of compliance,” a CBAM mechanism affects the entire value chain, from logistics to sourcing quality control to raw material procurement, and eventually downstream and consumer industries.

There is a substantial concern that developing countries with low carbon emissions or pledges under the Paris Agreement, but weaker emission caps and tariffs, will be at a disadvantage in comparison to highly industrialized and developed countries. To avoid unilateralism, international cooperation will be critical. The Paris Agreement, which was based on voluntary commitments, could be undone if developed countries, such as the EU, can coerce other countries into taking similar steps.

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Facebook to rebrand the company ‘Metaverse’




Facebook is the world’s largest, and arguably most influential, social media platform, with more than 2.8 billion monthly active users and a net worth as of now of $1 trillion.

It’s safe to say that the majority of our lives rely on Facebook. Recently, Facebook, the parent company of Instagram and WhatsApp, hit the headlines when it went dark for six hours, causing havoc all over the world.

According to a report by The Verge, Facebook is planning to rebrand the company with a new name to focus on building the metaverse. Metaverse, as the term suggests, is a virtual-reality space in which users can interact with a computer-generated environment and other users.

According to the report, CEO Mark Zuckerberg will reveal the company’s new name on October 28 at the annual Connect conference, but it could be announced sooner.

Facebook, which aspires to be renowned for more than just social networking, revealed on Sunday that it will hire 10,000 people in Europe over the next five years to help construct the metaverse, which the corporation regards as critical to its long-term success.

In July, Zuckerberg said that Facebook’s future lies in the virtual metaverse, in which users will live, work and play inside.

Facebook already has more than 10,000 employees who build consumer hardware like AR glasses that Zuckerberg believes will be as ubiquitous as smartphones.

The company wants to be known as much more than a “social media” company, and is promising to change the way humanity interacts.

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One to lookout for: Rakesh Jhunjhunwala invests in a furniture startup!




Rakesh Jhunjhunwala, often referred to as India’s own Warren Buffett, is an ace investor with a track record of successful investing. Many treat him as a bellwether, and look to him for guidance and inspiration when it comes to navigating the vagaries of the investing landscape. And so, it would be of interest to investors to know that India’s Big Bull has out his money where his mouth is and invested in a furniture-based startup, Arrivae.

What is Aarivae?

Founded in 2017, Arrivae is a customized full home interior solution provider that enables customers to get the house customers want. From designing the finest homes by some of the finest architects and interior designers to material supplied by some of the most credible vendors. It specializes in providing practical solutions for various situations. Arrivae works in four simple steps; meeting the designer, designs made for customers, intelligent manufacturing and lastly concierge services.

Arrivae raised Rs 50 crore in its first round of external funding, backed by ace investor Rakesh Jhunjhunwala. Enam family, Siddharth Yog (Founder, Xander Group), Anand Jain (Chairman, Jai Corp), Harsh Jain (Founder, Dream 11), and Ramesh S. Damani (Chairman, DMart) all participated in the fundraising round.

“At Arrivae, we’re still in the early phases of our plan to build India’s most comprehensive home renovation ecosystem. Partnerships are important to us at Arrivae because they help us build brand confidence in the ecosystem, especially among customers.” said founder Yash Kela.

Kela rounded things off by saying, “All the veterans who have participated in this round will enable more faith in the Arrivae brand.”

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The right pricing will be crucial for the launch of Zydus Cadila’s vaccine.




The destiny of Zydus Cadila’s Covid vaccine is in doubt, as the vaccine’s price appears to be delaying its introduction into the vaccination program. The business has received emergency use authorization from the FDA to inject its Covid vaccine, ZyCoV-D, to children aged 12 to 18.

Zydus Cadila, located in Ahmedabad, has imported the pharmaJet, a needle-free applicator for painless intradermal vaccine delivery. 

Each jet is responsible for delivering a specific amount of vaccination. 

As a result, a single dose is split into two shots, one for each arm. “It’s an expensive device and hence jacks up the overall price,” a government official said.

Around 20,000 dosages can be administered with the jet injector.

The government has been purchasing Covaxin at 225 per dosage and Covishield, another Covid vaccine developed in India, at 215 per dose.

The price of the Zydus Cadila vaccine, according to Health Secretary Rajesh Bhushan, will be significantly more than that of existing vaccines.

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