Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

EU countries support plan for world-first carbon border tariff

Economy Mar 16, 2022 11:39
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels, Belgium, March 6, 2019. REUTERS/Yves Herman 2/2

By Kate Abnett

BRUSSELS (Reuters) -European Union countries on Tuesday backed the bloc's plan to impose a world-first carbon dioxide emissions tariff on imports of polluting goods, although the finer details will need to be worked out in upcoming negotiations.

The EU wants to introduce CO2 emissions costs from 2026 on imports of steel, cement, fertilisers, aluminium and electricity -- a move aimed at protecting European industry from being undercut by cheaper goods made in countries with weaker environmental rules.

A three-year transition phase for the levy would begin in 2023, so EU countries and the European parliament are racing to negotiate and approve the rules this year. Finance ministers from EU countries on Tuesday agreed on their negotiating position.

"It's a major step forward in the fight against climate change," French finance minister Bruno Le Maire said after the ministers' meeting in Brussels, adding that a "sizable majority" supported the position.

"We're making the effort to reduce carbon emissions in industry. ... We don't want these efforts to be of no avail because we import products which contain more carbon," Le Maire said.

The levy is part of a package of EU climate change policies designed to cut the bloc's emissions by 55% by 2030 from 1990 levels.

That goal will require huge investments from industry in green technologies like hydrogen and impose higher CO2 costs on polluters. The border levy aims to create a "level playing field" by imposing the same CO2 costs on EU companies and those abroad.

France, which currently chairs meetings of EU ministers, has long supported the levy and prioritised a swift deal on it. European parliament plans to confirm its position by July, meaning negotiations between parliament and EU countries on the final rules could begin after summer.

Ministers did not decide how quickly the border levy should replace the free CO2 permits industries currently receive under the EU carbon market, however. The phasing out of those permits is contentious, and ministers said it would be negotiated in separate talks on EU carbon market reforms.

The issue of whether revenue from the CO2 levy will go into the EU budget will also be discussed later.

"The agreement leaves many questions unanswered," said Parliament's lead lawmaker on the policy, Mohammed Chahim, adding that he "cannot make any deal" without clarity on the free permit phase-out.

Chahim wants to end free CO2 permits by 2028. The commission proposed 2035, while some industries are lobbying to keep them.

EU countries support plan for world-first carbon border tariff
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email