EU agrees on CO2 tariff

On Tuesday night, the EU Parliament, Commission and member states agreed on the so-called CO2 border adjustment – the world’s first import tariff for energy-intensive products based on their carbon dioxide emissions. This is intended to protect the competitiveness of Europe’s industry and prevent production from being relocated to regions of the world with lower climate protection standards.

The tariff will apply to cement, iron, steel, aluminium, fertilizer, electricity and hydrogen and is expected to be introduced in October 2023 with a transitional period. Importers will have to buy allowances to cover CO2 emissions.

It is good that the decision has been made and that there will be a transition phase of possibly three years, says Erich Frommwald, chairman of the industry division in the Upper Austrian Chamber of Commerce: “But implementation will be decisive. It is very important to be precise in the transition phase to evaluate whether the system is working and not being circumvented.”

Only when this has been ensured should one begin to stop the allocation of free certificates for European producers. That will be the acid test in further negotiations.

The formal approval of the EU Council is still pending. In the course of the week, the emissions trading and the exact timing of the CO2 tariff will be discussed.

On Tuesday, the energy ministers of the member states discussed another energy issue – an EU gas price cap. Austria’s Leonore Gewessler was skeptical about an agreement before the appointment. There are “still very different positions” on all open points. (az)