Consider the following statements regarding the EU’s Carbon Border Adjustment Mechanism (CBAM):
1. It applies a carbon price on imported goods to promote cleaner industrial production in non-EU countries.
2. It ensures that the carbon price imposed on imports matches the carbon price applied to similar goods produced within the EU.
3. It has been designed in compliance with WTO rules to prevent trade disputes and protectionist concerns.
Which of the statements given above is/are correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2, and 3