10 February 2021
Australian exports could be slapped with a carbon tax of as high as $140 per tonne, under a new plan endorsed by the European Parliament – due to the unambitious climate policies adopted by the federal Coalition government.
The European Parliament has endorsed a proposal for a new Carbon Border Adjustment Mechanism, that would aim to level the playing field between European producers, which are subject to the EU emissions trading scheme, and international competitors, like Australia, which do not currently price carbon emissions.
The idea of a carbon border adjustment mechanism formed part of the European Parliament’s planned European Green Deal in response to the Covid-19 pandemic. It could see Australian exporters of fossil fuels, metals and beef and lamb forced to purchase carbon permits to sell their products in the European market.