EU Reaches Deal To Impose World's First Carbon Border Tariff• https://www.zerohedge.com by Tyler Durden
After all-night negotiations, EU governments and the European Parliament struck a deal on key parts of the "Carbon Border Adjustment Mechanism" (CBAM) that is set to be phased in by the second half of 2023. The new measure will be the first of its kind, imposing CO2 emissions taxes on imports such as cement, steel, aluminum fertilizers, electricity production, and hydrogen.
CBAM intends to protect Europe's domestic manufacturing industry from competitors in countries that have yet to regulate carbon-dioxide emissions and will attempt to force countries to set prices on carbon -- either through a tax or by a cap-and-trade system.
"CBAM will be a crucial pillar of European climate policies. It is one of the only mechanisms we have to incentivise our trading partners to decarbonize their manufacturing industry." Mohammed Chahim, European Parliament's lead negotiator on the law, said in a statement.