mspohr
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EU becomes first leading economy to legislate for ‘green tariff’ on imports
In the early hours of Tuesday morning the EU became the first big economy to legislate for a “green tariff” on imports, to be levied on goods that are produced with high carbon dioxide emissions. The carbon border adjustment mechanism (CBAM) means that countries which fail to green their industries will soon face a new threat: an effective carbon tax that will penalise those hoping to profit from high-carbon activities, and force them to clean up.
Pascal Canfin, chair of the EU parliament’s environment committee, hailed the move: “The agreement is a world first. For the first time, we are going to ensure fair treatment between our companies, which pay a carbon price in Europe, and their foreign competitors, which do not. This is a major step that will allow us to do more for the climate while protecting our companies and our jobs.”
In the early hours of Tuesday morning the EU became the first big economy to legislate for a “green tariff” on imports, to be levied on goods that are produced with high carbon dioxide emissions. The carbon border adjustment mechanism (CBAM) means that countries which fail to green their industries will soon face a new threat: an effective carbon tax that will penalise those hoping to profit from high-carbon activities, and force them to clean up.
Pascal Canfin, chair of the EU parliament’s environment committee, hailed the move: “The agreement is a world first. For the first time, we are going to ensure fair treatment between our companies, which pay a carbon price in Europe, and their foreign competitors, which do not. This is a major step that will allow us to do more for the climate while protecting our companies and our jobs.”