Vapour pours from a steel mill chimney in the industrial town of Port Kembla, about 80 km (50 miles) south of Sydney July 7, 2011. REUTERS/Tim Wimborne/File Photo Acquire Licensing Rights
BRUSSELS, Oct 1 (Reuters) – The European Union launched on Sunday the first phase of the world’s first system to impose CO2 emissions tariffs on imported steel, cement and other goods as it tries to stop more polluting foreign products from undermining its green transition.
The planned tariff has caused disquiet among trading partners and at a forum last month, China’s top climate envoy Xie Zhenhua urged countries not to resort to unilateral measures such as the EU levy.
The bloc will not begin collecting any CO2 emission charges at the border until 2026.
Sunday, however, marks the start of an initial phase of the Carbon Border Adjustment Mechanism (CBAM) when EU importers will have to report the greenhouse gas emissions embedded during the production of imported volumes of iron and steel, aluminium, cement, electricity, fertilisers and hydrogen.
Importers will from 2026 need to purchase certificates to cover these CO2 emissions to put foreign producers on a level footing with EU industries that must buy permits from the EU carbon market when they pollute.
European Economy Commissioner Paolo Gentiloni said the aim was to encourage a worldwide shift to greener production and to prevent European manufacturers reloc
