Countries around the world are pressing for ‘environment protection’. This urgency is undeniable as the world is facing unprecedented challenge of global warming and witnessing many environmental catastrophes. However, due to the varied geographies and economies of countries, there seems to be an impasse between the global north and the global south about responsibility and compensation for loss and damage brought on by climate change. The global north as a solution to the existing problem has come up with unilateral environmental measures which can have far-reaching effects on the trade of developing and least developed countries (LDCs). In this context, the European Union’s (EU’s) introduction of the Carbon Border Adjustment Mechanism (CBAM) as part of its ‘fit for 55’ climate policy package and the EU’s Deforestation Regulation (EUDR) have been introduced which not only impacts EU’s own domestic industry but has an extra-territorial application as well. This would further impact the exporters of steel, rubber, coffee, soy, and other products to the EU. It is undeniable that measures to protect the environment are a pressing priority, but those measures have to be applied in accordance with multilateral Agreements such as the General Agreement on Tariffs and Trade (GATT), 1994. Further, such extra territorial and unilateral measures should take into account the peculiarities of various countries. Against this background, the paper will examine how the EU laws, such as the CBAM and the EUDR, may impact developing nations, particularly India and the compatibility of those unilateral measures with the relevant provisions of the GATT 1994.