EU CBAM and other EU trade barriers

1. Question 1Answer A

   When did the EU Carbon Border Adjustment Mechanism enter its definitive phase?

   • ACorrect answer: 1 January 2026
   • B1 January 2025
   • C1 July 2026
   • D1 January 2027

   Core Trigger: The EU Carbon Border Adjustment Mechanism entered its definitive phase on 1 January 2026.From Book 1 RATNA, topic 155, point 1

2. Question 2Answer B

   Critics ask whether a carbon border tax is fair climate trade or what?

   • AIllegal sanctions regime
   • BCorrect answer: Disguised protectionism
   • CSubsidy for exporters
   • DVoluntary climate pledge

   Debate: Critics ask whether a carbon border tax is fair climate trade or disguised protectionism.From Book 1 RATNA, topic 155, point 2

3. Question 3Answer C

   Which Indian exports are most exposed to CBAM?

   • ATextiles and garments
   • BTea and coffee
   • CCorrect answer: Steel and aluminium
   • DPharmaceutical products

   Exposed Goods: Importers must buy certificates covering the carbon embedded in steel, aluminium and cement; Indian steel and aluminium are most exposed.From Book 1 RATNA, topic 155, point 3

4. Question 4Answer D

   What are embedded emissions?

   • AGases released while shipping a good
   • BGases released while consuming a good
   • CGases offset by carbon credits
   • DCorrect answer: Gases released while producing a traded good

   Key Term: Embedded emissions are the greenhouse gases released while producing a traded good.From Book 1 RATNA, topic 155, point 4

5. Question 5Answer D

   Which EU regulation follows CBAM in December 2026?

   • ADigital Markets Act
   • BGeneral Data Protection Regulation
   • CCorporate Sustainability Due Diligence Directive
   • DCorrect answer: EU Deforestation Regulation

   Next Rule: The EU Deforestation Regulation (EUDR) follows in December 2026.From Book 1 RATNA, topic 155, point 5

6. Question 6Answer D

   To ease the CBAM burden on small exporters, the Centre plans to do what?

   • APass costs to EU importers
   • BImpose a domestic carbon tax
   • CLeave costs to exporters
   • DCorrect answer: Absorb most MSME compliance costs

   India Link: The Centre plans to absorb most MSME compliance costs, easing the burden on small exporters.From Book 1 RATNA, topic 155, point 7

7. Question 7Answer D

   Which city does the European Commission sit in?

   • AStrasbourg
   • BLuxembourg
   • CFrankfurt
   • DCorrect answer: Brussels

   Headquarters: The European Commission, which administers the EU, sits in Brussels, Belgium.From Book 1 RATNA, topic 155, point 8

8. Question 8Answer C

   In which year was the CBAM Regulation (EU) 2023/956 adopted?

   • A2019
   • B2021
   • CCorrect answer: 2023
   • D2025

   Founded: The CBAM Regulation (EU) 2023/956 was adopted in 2023, with a transitional reporting phase starting 1 October 2023.From Book 1 RATNA, topic 155, point 9

9. Question 9Answer D

   The Paris Agreement was adopted in 2015 at which COP?

   • ACOP15
   • BCOP19
   • CCOP26
   • DCorrect answer: COP21

   Landmark: The Paris Agreement, adopted in 2015 at COP21, is the main global climate treaty.From Book 1 RATNA, topic 155, point 10

10. Question 10Answer C

    Consider the following. 1. Article XX of the GATT permits trade measures for environmental protection, subject to non-discrimination. 2. Common but differentiated responsibilities means developed states bear more of the climate duties. Which is/are correct?

    • AOnly 1
    • BOnly 2
    • CCorrect answer: Both 1 and 2
    • DNeither

    Articles: Article XX of the GATT permits trade measures for environmental protection, subject to non-discrimination conditions.From Book 1 RATNA, topic 155, point 11

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