Green protectionism
Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
Green protectionism means using environmental standards or climate measures as disguised trade barriers. The measures look like climate policy, but in practice they block imports, especially from developing countries. Developing countries argue that such unilateral rules ignore CBDR-RC (common but differentiated responsibilities, under the UNFCCC). That principle says rich and poor countries should not carry equal climate burdens.
Example
The EU's carbon border adjustment mechanism (CBAM), set up under Regulation 2023/956, entered its definitive phase on 1 January 2026. It charges carbon-intensive imports such as steel, aluminium, cement and fertilisers the same carbon price EU producers pay. India objects because CBAM hits its steel and aluminium exports. As part of its answer, India notified the Carbon Credit Trading Scheme (June 2023), so that carbon prices paid at home can be credited.
Don't confuse with
- Carbon leakage: this is the problem CBAM says it solves, where production moves to countries with laxer climate rules. Green protectionism is the criticism that such measures unfairly shut out imports.
Related concepts
- Weaponisation of trade
- Economic coercion
- Economic sanctions
- Secondary sanctions
- Export controls
- Dual-use goods
- Technology denial
- Security exception
- Trade war
- Retaliatory tariff