The European Union’s Carbon Border Adjustment Mechanism (CBAM) is a groundbreaking policy addressing global climate change while reshaping trade dynamics. Introduced in October 2023, this mechanism imposes carbon taxes on imports based on the carbon intensity of their production processes. By 2026, the CBAM will impose taxes ranging from 20% to 35% on specific imports, marking a significant shift in international trade. This article explores CBAM’s implications for India and outlines strategies to mitigate its impact. What is CBAM and How Does It Work? CBAM is part of the EU’s “Fit for 55” package, designed to reduce greenhouse gas emissions…