The EU member states have agreed in principle to levy taxes on certain goods whose production in other EU countries emits gases that are harmful to the climate. According to France, a very large majority was in favor of the proposal that the EU Commission presented in the summer of 2021. The measure must now be negotiated with the EU Parliament.
The agreement is an “important step towards fairness,” said Finance Minister Magnus Brunner (VP) on the fringes of a meeting of EU finance and economics ministers in Brussels. According to Brunner, producers who could possibly produce goods more cheaply in countries with a less ambitious climate policy would currently have cost advantages on the European market. Therefore, a “system is needed that balances the CO2 price between domestic products and imports”.
The German Finance Minister Christian Lindner also welcomed the agreement. “We have to maintain the competitiveness of our economy in Europe, but at the same time increase our efforts to protect the climate,” said Lindner.
With the so-called Carbon Border Adjustment Mechanism (CBAM) – manufacturers outside the EU should pay if they want to sell goods in the Union that produced CO2 emissions. Initially, this should affect cement, steel, aluminum, fertilizers and electricity. According to the plans, the regulation will apply from 2026.
This should lead to comparable costs for imported goods and products produced in the EU. Because of the emissions trading system, EU manufacturers already have to pay for emissions of climate-damaging gases such as CO2 via certificates. The CO2 prices for foreign manufacturers should be based on the emission certificates.
Source: Nachrichten
