The European Green Deal & Fit for 55
European Union (EU) lawmakers have recently approved carbon market reforms, which are part of the EU’s Fit for 55 package.
Fit for 55 are targets set by the European Union to reduce greenhouse gas emissions.
It aims to reduce greenhouse gas emissions by at least 55% below 1990 levels by 2030. Also, by 2050, the goal of net zero emissions is to be achieved.
- This is against the Common but Differentiated Responsibilities (CBDR) principle.
- It is discriminatory, as it will increase the prices of Indian goods in Europe and reduce their demand.
- As a result, market distortion may arise.
- A possible economic risk may arise in front of the Global South. Developing countries may struggle to decarbonize fast enough to remain competitive in the global market.
- Other developed economies may also implement carbon cap taxes. This will prove to be harmful for the industries of the developing countries in the short run.
Source – Indian Express
