MBMs impact the marginal cost of operation, thereby encouraging the industry to either reduce emissions, purchase credits from others to meet emission reduction targets, or remain competitive in the market. The specific design of an MBM affects the competitiveness of the sector differently. In the case of imposing MBM in the shipping sector, the competitiveness of other export-oriented sectors will also be affected. A careful, technical examination of challenges and opportunities posed by different MBMs is necessary to inform India’s negotiation position on this subject.