The world’s first carbon border tax proposed by the European Union is likely to hit Russia the hardest but leave Chinese trade relatively unscathed, according to a joint study by two European climate think tanks.
The EU proposed in July a Carbon Border Adjustment Mechanism (CBAM), or CO2 tariff, on polluting goods from 2026, forcing some companies importing into the EU to pay carbon costs at the border on carbon-intensive products such as steel and aluminium.
The CBAM will be introduced in 2023 at the earliest before becoming fully operational in 2026, according to European Commission proposals.
The sectors covered by the scheme involve only around 3.2% of the total imports coming into the EU each year, but their CO2 emissions are the equivalent of around 47% of the free emission allowances now allocated to European firms.
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