? Rusak Trade Compliance News reports:
▶️ The EU has agreed on the world’s first program to support the decarbonization of the European industry by introducing a carbon tariff on the import of goods polluting the environment through CO2 emissions.
▶️ The EU law will impose tariffs on carbon dioxide emissions for imported iron and steel, cement, fertilizers, aluminum, and electricity, with importers required to purchase certificates to cover the so-called embedded emissions associated with the extraction and production of individual goods. This will also apply to imported hydrogen.
▶️ The new regulations aim to level the playing field for local producers and prevent the weakening of the EU market flooded with cheaper goods manufactured in countries with less stringent environmental protection regulations.
▶️ The Carbon Border Adjustment Mechanism (CBAM) is set to come into effect on October 1, 2023. However, during the initial period of its operation, importers will only need to report their carbon dioxide emission obligations.
▶️ Currently, the EU provides domestic industry with free permits for carbon dioxide emissions to protect it from foreign competition, but these will be withdrawn after the introduction of the border carbon tariff.
▶️ Before the end of the transitional period, the European Commission will assess whether to extend the CBAM system to all goods covered by the EU Emissions Trading System (EU ETS) by 2030.
▶️ It is expected that the tax will be fully operational by 2026.
? For more on this topic from the British perspective, please visit: export.org.uk/news/news.asp?id=625976″>Link
