31 the EU’s Carbon Bord ...
What's Changing and Why It Matters The National Payments Corporation of India (NPCI), the institution running UPI, has collaborated with banks, fintechs, and the Unique Identification Authority of India (UIDAI) to roll out Aadhaar-based biometrics in payment authentication. This implies that users wRead more
What’s Changing and Why It Matters
The National Payments Corporation of India (NPCI), the institution running UPI, has collaborated with banks, fintechs, and the Unique Identification Authority of India (UIDAI) to roll out Aadhaar-based biometrics in payment authentication. This implies that users will no longer have to type in a 4- or 6-digit PIN once they input the amount but can simply authenticate payments by their fingerprint or face scan on supported devices.
The objective is to simplify and make payments more secure, particularly in the wake of increasing digital frauds and phishing activities. By linking transactions with biometric identity directly, the system includes an additional layer of authentication that is far more difficult to forge or steal.
How It Works
- For Aadhaar-linked accounts: Biometrics (finger or face data) of users will be compared to Aadhaar records for authentication.
- For smartphones with inbuilt biometric sensors: Face ID, fingerprint readers, or iris scanners can be employed for fast authentication.
- For traders: Small traders and shopkeepers will be able to utilize fingerprint terminals or face recognition cameras to receive instant payments from consumers.
This system will initially deploy in pilot mode for targeted users and banks before countrywide rollout.
Advantages for Users and Businesses
Quicker Transactions:
No typing and recalling a PIN — just tap and leave. This will accelerate digital payments, particularly for small-ticket transactions.
Increased Security:
Because biometric information is specific to an individual, the risk of unauthorized transactions or fraud significantly decreases.
Inclusion of Finance:
Millions of new digital users, particularly in rural India, might find biometrics more convenient than memorizing lengthy PINs.
UPI Support for Growth:
As UPI has been crossing over 14 billion transactions a month, India’s payments system requires solutions that scale securely and at scale.
Privacy and Security Issues
While the shift is being hailed as a leap to the future, it has also generated controversy regarding data storage and privacy. The NPCI and UIDAI are being advised by experts to ensure:
- Biometric information is never locally stored on devices or servers.
- Transmissions are end-to-end encrypted.
- Users have clear consent and control over opting in or out of biometric-based authentication.
The government has stated that no biometric data will be stored by payment apps or banks, and all matching will be done securely through UIDAI’s Aadhaar system.
A Step Toward a “Password-Free” Future
This step fits India’s larger vision of a password-less, frictions-less payment system. With UPI now being sold overseas to nations such as Singapore, UAE, and France, biometric UPI may well become the global model for digital identity-linked payments.
In brief, from October 8, your face or fingerprint may become your payment key — making India one of the first nations in the world to combine national biometric identity with a real-time payment system on this scale.
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What CBAM Actually Does The CBAM puts a price on carbon for certain imported goods — steel, cement, aluminum, fertilizers, hydrogen, and electricity — based on how much CO₂ is emitted during production. Essentially, if their home country has less stringent carbon regulations, they will have to pay aRead more
What CBAM Actually Does
The CBAM puts a price on carbon for certain imported goods — steel, cement, aluminum, fertilizers, hydrogen, and electricity — based on how much CO₂ is emitted during production. Essentially, if their home country has less stringent carbon regulations, they will have to pay a tariff to send it into the EU, leveling the playing field for European producers who already bear the cost of theirs through the EU Emissions Trading System (ETS).
For European policymakers, it’s a matter of preventing “carbon leakage” — the possibility that companies will relocate to sites with lower climate policies in order to maintain their cost of production. The EU doesn’t want to cause just a relocation of emissions on a global level but a shift towards greener production.
Global Exporters’ Impact
Global exporters, especially those from emerging and energy-dependent economies, have faced pressure and opportunity from CBAM.
Increased Production Costs:
Exporters from countries like China, India, Turkey, and Russia are finding that exporting carbon-intensive goods to the EU is now expensive. Companies producing steel or cement based on coal-fired electricity, for example, are facing cost hikes led by tariffs, reducing their competitiveness in the European market.
Pressure To Go Green:
On the negative side, CBAM is pushing industries around the world to rethink how they produce goods. Some exporters are already investing in cleaner technology — renewable energy, low-carbon furnaces, and carbon capture gear — not just to meet EU regulations but to stay competitive on the world market. It’s acting as an galvanizing force for greener industrial modernization.
Administrative and Reporting Burden:
Starting from the transition phase (2023–2025), the exporters need to submit emissions information regarding their product, even before they pay duties. This has been challenging for small companies that lack the technical expertise to correctly establish their carbon footprint. The EU’s requirements for transparency and verification are strict and typically costly to fulfill.
Trade Tensions and Equity Concerns:
Most developing countries respond that CBAM is a “green protectionist” instrument — a vehicle to shield European industries behind the guise of climate policy. They worry it would unfairly punish nations that are still relying on fossil fuels for growth, charging their exports and slowing economic progress. CBAM has sparked disputes over whether it violates the ethos of free trade at WTO and G20 meetings.
Ripple Effects Around the World
CBAM is not only affecting exports to Europe; it’s sending ripples around the world. Other big economies — the U.S., Canada, and Japan — are considering carbon border taxes of their own. The start of a new “carbon accountability era” in trade begins here, with sustainability no longer a virtue but a competitive advantage.
For multi-national corporations, the shift is about redesigning supply chains, tracking emissions more vigorously, and linking up with more sustainable suppliers. Meanwhile, nations that commit to renewable energy infrastructure early will likely gain a strategic advantage in future trade agreements.
The Balancing Act Ahead
In the end, CBAM is a manifestation of the tension between economic fairness and environmental necessity. Though it is beneficial to the EU to accelerate beyond its Green Deal aspirations and push the world towards emission cuts, it also highlights the worldwide split on climate readiness. The coming years will answer whether developing economies can access funds and technology to green their industries, or whether CBAM widens the gap between the Global North and South.
In Short
The EU’s Carbon Border Adjustment Mechanism is transforming the global business climate by linking carbon responsibility to market access. It’s not just a tariff — it’s a signal that the world’s biggest trading bloc is prepared to bring real economic heft to the climate cause. For exporters everywhere, transformation is no longer optional; it’s the new cost of doing business in a decarbonizing world.
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