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MEPs agree carbon border tax - heavy industries protected
Under the internal carbon market, free allowances are expected to be gradually phased out by 2030 (Photo: Fredrik Olastuen)
Brussels, 12. Mar, 07:04
MEPs have voted in favour of introducing a carbon border tax on selected imports from less green nations, aimed at protecting Europe s economy and businesses against carbon-emitting competitors outside the bloc.
By making polluting companies pay an emissions-based fee to sell their products in the EU, Brussels wants to further prevent businesses from transferring production to non-EU countries with less strict climate rules - so-called carbon leakage .
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Lawmakers in the European Parliament on Friday (5 February) backed a levy on carbon-intensive products imported into Europe, calling on the European Commission to introduce a so-called “carbon border adjustment mechanism” as quickly as possible.
In a resolution adopted on Friday (5 February), the European Parliament’s environment committee emphasised the need for the levy to be WTO-compatible and introduced no later than 2023.
“A carbon border adjustment mechanism should cover all imports, but as a starting point already by 2023, it should cover the power sector and energy-intensive industrial sectors like cement, steel, chemicals and fertilisers,” reads the opinion.
The resolution sees the levy as a way to decarbonise in Europe and beyond by exposing imported goods to the same carbon costs faced by EU manufacturers.