(MENAFN- KNN India)
New Delhi, Nov 16 (KNN) India criticised unilateral trade measures implemented under the banner of climate action during Friday's presidential consultations at COP29 in Baku, calling them discriminatory and detrimental to multilateral cooperation.
The nation argued that such measures could potentially restrict the development trajectories of developing countries.
The stance received substantial support from other developing nations, with both the G77 bloc, representing over 130 nations, and Like-Minded Developing Countries expressing firm opposition.
In contrast, developed nations, particularly the European Union, contended that such discussions belong in the World Trade Organization rather than the United Nations Framework Convention on Climate Change (UNFCCC).
At the heart of the debate is the European Union's Carbon Border Adjustment Mechanism (CBAM), which proposes taxation on energy-intensive imports including iron, steel, cement, fertilisers, and aluminium from countries such as India and China.
The United Kingdom and United States are reportedly developing similar mechanisms. According to the Centre for Science and Environment, this measure could impose an additional 25 percent tax on Indian carbon-intensive exports to the EU, amounting to 0.05 percent of India's GDP.
India argued that such measures effectively force developing and low-income nations to shoulder the costs of low-carbon transition, undermining climate finance commitments from developed nations who have historically contributed most to greenhouse gas emissions.
Indian officials likened it to 'asking the victim to pay for the remedy,' noting that these measures violate principles of equity and UNFCCC provisions.
The controversy significantly delayed COP29's opening plenary on Monday, following China's proposal on behalf of the BASIC group to address unilateral trade measures at this year's conference.
India's Finance Minister Nirmala Sitharaman had previously characterised CBAM as 'unilateral and arbitrary,' expressing concerns about its potential impact on Indian industries and international trade balance.
India emphasised that climate policies should prioritise concessional finance and capacity building for both mitigation and adaptation, rather than imposing trade restrictions.
The nation called for careful assessment of such measures' impact on equitable transitions, sustainable development, and poverty eradication efforts.
(KNN Bureau)
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