(15 December 2022 – Brussels) The EU has become the first major economy to legislate for a “green tariff” on imports, to be levied on goods that are produced with high carbon dioxide emissions such as iron and steel, cement, fertilisers, aluminium and electricity.
Prior to the end of the transition period the European Commission will assess whether to extend the scope to other goods at risk of carbon leakage, including organic chemicals and polymers, with the goal to include all goods covered by the current European emissions trading scheme by 2030. They will also assess the methodology for indirect emissions and the possibility to include more downstream products.
The aim of the levy is to prevent European industry from being undercut by cheaper goods made in countries with weaker environmental rules.
“It’s a very strong message to the rest of the world and I can’t imagine that other regions will not follow with a similar mechanism,” said, EU Parliament Lead Negotiator, Mohammed Chahim.