EU to strengthen carbon levy on high-emission imports, curb evasions

The European Union (EU) will expand its carbon border levy — a fee charged on imports of high-emission goods — to cover car parts and washing machines, under European Commission proposals published on Wednesday.

- REUTERS

The plans would also tighten loopholes that the Commission worries could allow foreign firms to dodge the fee, which is currently in a pilot phase and will start imposing costs from January.

The EU’s Carbon Border Adjustment Mechanism (CBAM)-the world’s first carbon border tariff - will impose fees on the CO2 emissions of imported goods including steel, aluminium, cement and fertilisers. The policy, known as CBAM, is designed to shield European industries against cheaper imports from countries with weaker climate rules. But it has irritated trading partners including China, India and South Africa, which say it unfairly penalises their economies.