The think tank in its report claimed that the real reasons the EU introduced CBAM are to protect uncompetitive local industries from cheaper imports; to earn considerable revenue to fund its budget; and to operationalize the trillion-dollar subsidy initiative. "If this disrupts world trade, the EU is okay. The EU needs this money to continue to provide substantial subsidies to its firms and farmers. The new regulations can provide a full share of the EU budget," Srivastava said.