Atul Kumar RollNo 5

DarpanKulshreshtha

Roll No 21

GauravBandlish Roll

No 25

Nikhil NagarRoll No 40

Sunny MalikRoll No 68

Carbon tax is an environmental tax on carbon emissions. However, the EU and the US have been threatening to usecarbon tax on exports from developing countries under the guise of controlling emissions.

India has warned that it could exercise the option of moving the WTO Dispute Settlement Body if the European Unionand the US impose carbon tax on Indian exports.

Major of the developing countries Brazil, South Africa, India and China — are united on the issue of fighting carbontax proposed by these rich countries.

China has more at stake than India, considering its volume of trade.

Following the collapse of the Copenhagen Summit, the US and the EU have hinted at the levy of carbon tax on importsto force large polluters, especially the developing nations such as China and India, to take a clean environment stance.The US and the EU had also attempted to link climate and trade issues in copenhagen.Indian Commerce Ministry is studying the possible impact of the proposed carbon tax on India's exports of items suchas steel, iron, aluminium, cement and chemicals through Indian Institute of foreign trade.There is a good possibility of imposition of such an import barrier by the developed countries,but Such barriers are notgoing to be WTO-compatible and India would fight against it.

Personally I feel that these nations are serving their own interests in the guise of climatic issues and mixingenvironmental and trade concerns.

Imposition of carbon tax on Indian exports will certainly act as a barrier for Indian SME exporters to carry on tradesmoothly with the US and the EU, thereby hindering their prospects of increasing their overseas export growth.

World Carbon emission by region

India and China both have weak environment regulation mechanism and EU and US are trying to make use of this factto deblitate the economies of developing countries.Policy makers in the UK and Australia are also debating the pros and cons of such regulations that would forcecountries like India to enforce a carbon emission reduction regime.

India should end its dependence on fossil fuel and consumers should be more disciplined in their use of subsidised fuel,but the government has to be cautious while considering harsh disincentives to the use of fossil fuel such as a carbontax.I agree that such regulations are definitely going to come from WTO , and India should be prepared for the same sincesooner and later the world economies has to realise that we are loosing on precious environmental factors whilegrowing in technologyEnergy efficiency of Indian Industries is too low and of course the time has to come when India need to realize it andwork for it.I am not sure if India will win approaching to WTO dispute settlement , Even if it wins, in future these taxes has tocome, since until and unless there is a financial cost levied and enforced on the industries , they are not going to realizewhat wrong they are doing with the environment and how inefficiently they are using the precious natural resources.If a carbon tax is to be devised at all, it should wait for the current talks at the multilateral level to lay down acceptableground rules.India should enhance its efforts to bring nuclear technologies in India, since with nuclear technology the production ofpower will come down drastically.India should also stop selling subsidized oil products to its citizen/ Industry, which will make India realize to workenergy efficient, though , the Governments, in urge of making their vote banks may not dare to do so.It is a good time for India to realize and act on this future issue and start levying carbon taxes on its on products.Thiswould raise revenue for Government and cut down the inflationary pressures also.Mr Jairam Ramesh can argue that the carbon tax does not fall under the purview of WTO, but the measures has to betaken for it,may with WTO or some other international organization may born for undertaking this responsibility.China has already started taken steps towards controlling the carbon emissions . China will impose a carbon tax onindustry from 2012 to curb carbon dioxide emissions. The tax would equate to 11 yuan per tonne of coal and 17 yuanper tonne of oil.The China government has vowed to cut "carbon intensity" – the amount of carbon dioxide emitted to create each unitof economic value – by 40 to 45 per cent by 2020, compared with 2005 levels, as part of the international CopenhagenAccord agreement.I feel that India should also start with a wake up call and start making realize Indian industries of these new rules beforethe world presses a panic button on India.