EU countries back plan for world-first carbon border tariff

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EU countries back plan for world-first carbon border tariff
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European Union countries on Tuesday backed the bloc's plan to impose a world-first carbon dioxide emissions tariff on imports of polluting goods, although the finer details will need to be worked out in upcoming negotiations.

The EU wants to introduce CO2 emissions costs on imports of steel, cement, fertilisers, aluminium and electricity, a move aimed at protecting European industry from being undercut by cheaper goods made in countries with weaker environmental rules.

"We're making the effort to reduce carbon emissions in industry...we don't want these efforts to be of no avail because we import products which contain more carbon," Le Maire said. France, which currently chairs meetings of EU ministers, has long supported the levy and prioritised striking a swift deal on it. European parliament plans to confirm its position by July, meaning negotiations between parliament and EU countries on the final rules could begin after summer.

The measure would gradually replace the free CO2 permits industries receive under the EU carbon market to help them stay competitive. How quickly to end those permits is contentious, and ministers left the details to be negotiated in separate talks on EU carbon market reforms.

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