The EU Has Taken the First Step Towards the Introduction of “Carbon” Tariffs
The European Commission approved the rules for the implementation of the mechanism of transboundary carbon regulation at the preparatory stage. The requirements for the Carbon Border Adjustment Mechanism (CBAM) system will come into force on October 1 and will be valid until the end of 2025. This will be the first step in imposing duties on CO2 emissions produced in the manufacture of products imported by the EU from foreign countries. It is reported by TASS.
During the transition period, companies in the European Union (EU) will be required to report emissions related to the products they import. At the same time, they are exempt from paying fees for exceeding the allowable limits that CBAM assumes.
Such measures will help the industry prepare for the full implementation of the mechanism by 2026. By this time, the system of tariff restrictions for non-compliance with environmental protection standards will be finalized, the EC indicates.
Proposals for the introduction of CBAM were published by the European Commission in the summer of 2021 in accordance with a plan to reduce greenhouse gas emissions in the community by 55% by 2030. The program covers the power industry, the steel industry, the production of cement and fertilizers.
The new duties should equalize the price of these goods with those produced in the EU and bring significant revenues to the budgets of the countries of the community. These revenues will then be directed to the needs of the development of the “green” economy.
However, the tariffs will also increase the cost of imported inputs for European producers. This will again increase the cost of products from the EU countries. This will reduce the competitiveness of European industry in the world market, some experts say.
