EU carbon tariff will target steel, cement and electricity, according to Bloomberg News
The European Union plans to impose carbon emission costs on imports of goods, including steel, cement and electricity, Bloomberg News reported on Wednesday evening.
The European Commission is due to propose its border carbon tariff policy on July 14, a measure designed to put EU companies on an equal footing with their competitors in countries with weaker carbon policies than those of the bloc .
Citing a draft of the proposal, Bloomberg said the border tax would be applied in full from 2026, after phasing in from 2023.
It would apply to steel, cement, fertilizers, aluminum and electricity, according to the report. Importers would be required to purchase digital certificates, each representing one tonne of carbon dioxide emissions embedded in their imported products.
The price of certificates will be linked to the cost of permits in the EU carbon market and based on the average price of EU carbon permit auctions each week.
The Commission declined to comment.
Each year, at the end of May, importers must report the amount of emissions contained in the goods they imported into Europe during the previous year, as well as the number of border levy certificates they returned.
EU power plants and industrial plants are required to purchase permits from the EU carbon market to cover their emissions. Permit prices hit record highs this year and were trading Thursday at 52 euros ($ 63.34) per tonne of CO2.
The Commission said countries whose climate policy ambitions match those of the EU may be able to dodge the border tax.
($ 1 = 0.8210 euros)
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