EU wants to impose border tariffs on polluting goods
The new tariff should be implemented by 2026
Steel, fertilizers, cement, aluminum and electricity will soon be more expensive to import into countries within the European Union.
On Tuesday, the EU agreed on a plan to impose a so-called carbon dioxide emission tariff on polluting goods. The bloc wants to protect European industry from countries with less restrictive environmental rules.
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“The main objective of this environmental measure is to avoid carbon leakage,” the EU said in a statement according to Al Jazeera.
“It will also encourage partner countries to establish carbon pricing policies to fight climate change.”
The final details in the plan still need to be negotiated, and therefore the tariff will not be effective until 2026. However, a three-year transition phase begins in 2023.
This new plan is part of a larger scheme, aiming to combat climate change and reach the EU’s goal of reducing its greenhouse gas emissions by 55 percent in 2030 compared to its 1990 level.
It calls for investments in green technology, higher costs on carbon polluting industries, and a termination of the free CO2 permits that enables the EU carbon market to remain competitive. The latter is an ongoing issue between European countries, yet the European Commission suggested ending the free CO2 permits by 2035.