The new agreemennt known as Carbon Border Adjustment Mechanism will cover industrial imports from the EU’s 27 member countries, beginning with the most polluting items
The European Union has announced a new deal to impose a tariff on goods that produce pollution during their manufacturing process. According to a report in Euronews on Tuesday, December 13, the agreement known as the “Carbon Border Adjustment Mechanism” (CBAM) will cover industrial imports from all 27 EU bloc countries.
The new carbon dioxide tariff is important for the EU, particularly at a time when its industry is moving to a low-carbon future. “The CBAM scheme will be a crucial pillar of European climate policies to encourage our trading partners to de-carbonise their industry”, said Mohammed Chahim, MEP from the Socialists and Democrats Party, according to a quote in the report.
As per the proposal by the European Commission, this new mechanism will target sectors that create the most amount of pollution including steel, aluminium, cement, fertilizers, and electricity.
Plans are to first impose the scheme for a test period that starts from October 2023, while the date for final implementation will be decided by the end of this week. Once the scheme is implemented, importers will have to declare the total carbon emissions produced during the manufacturing process of the product.
In case the emissions exceed the European standards, the importer will have to then acquire an emission certificate at the price of CO2 in the EU. The report added, if a carbon market already exists in the country of export, then the importer will only have to pay the difference.
As per the proposal by the European Commission, this new mechanism will target sectors that create the most amount of pollution including steel, aluminium, cement, fertilizers, electricity.
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