The US has proposed a legislation entitled ???American Clean Energy and Security Act of 2009??? which aims, inter alia, to reduce global pollution and transition to a clean energy economy. The proposed legislation has a provision for imposition of ???border adjustment??? measures. Under these measures, foreign manufacturers and importers including those from India would be required to pay for and hold special allowances to cover the carbon contained in US-bound products with a view to ensure that US manufacturers are not put at a disadvantage relative to overseas competitors.WTO, along with UNEP, has recently published a report titled ???trade and climate change??? which states that more open trade will most likely lead to increased emissions which may not be fully offset by the change in the emissions caused by improvements or changes in the ???composition??? and ???technique??? of output. Although, the report does not say that trade concerns should be subjugated to climate change issues, it mentions that climate change can lead to shifts in the pattern of international trade based on comparative advantage of countries.All developing countries included India have no obligation under the UN convention on Climate Change and its Kyoto Protocol to make any mandatory emission cuts.Minister of State for the Ministry of Environment and Forests( Independent charge) Shri Jairam Ramesh replied in a written question by Shri B.K. Hariprasad in Rajya Sabha today.