EU announces carbon tax on imports today

Valor Econômico, in 14/07/2021

The European Union (EU) announced this Tuesday (14/07) the creation of a carbon tax on imported products, to protect the European industry from foreign competitors who are not subject to the same environmental standards. The European plan is the strongest demonstration of how climate change-related policies will quickly become trade policies.

To justify the carbon tax or “Border Carbon Adjustment Mechanism” (CBAM), the President of the European Commission, Ursula von der Leyen, declared in an interview with a group of five major European newspapers that “it is necessary to reduce CO2 emissions in the world, not just in Europe”.

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