EU Global Carbon Border Tax to Hit US Companies
9 hours ago Eric Worrall 13 Comments
Essay by Eric Worrall
Trade war anyone? The EU is trying to dictate carbon policy to the world once again. But this latest tax the world initiative is overshadowed by the EU’s humiliating 2012 failure to tax US airlines.
More fights ahead for EU carbon border tax
EU negotiators struck a preliminary deal on a carbon border tax, but a final agreement hinges on talks this weekend.
BY FEDERICA DI SARIO
DECEMBER 13, 2022 5:36 PM CET
The EU’s first-of-its-kind carbon border levy designed to shield its industries from rivals in countries with lower CO2 pricing is almost a done deal, following talks that ended at 5 a.m. on Tuesday.
It’s a key part of the EU’s Fit for 55 program that aims to cut CO2 emissions by 55 percent by the end of the decade and the Green Deal that plans for the bloc to be climate neutral by 2050.
But there’s still a few key aspects of the Carbon Border Adjustment Mechanism (CBAM) to iron out in another round of talks this weekend.
The idea is that producers importing carbon-intensive products into the bloc will have to buy permits to account for the difference between their domestic carbon price and the price being paid by EU producers. A ton of carbon on the EU’s Emissions Trading System (ETS) currently costs just over €87; other countries like the U.S. have no national carbon price.
https://wattsupwiththat.com/2022/12/14/eu-global-carbon-border-tax-to-hit-us-companies/
