The European Union has begun rolling out its Carbon Border Adjustment Mechanism (CBAM), a world first that will eventually translate into a levy on imports in emissions-intensive industries like electricity, steel, cement, aluminum, and fertilizer.
The measure is meant to help European manufacturers that are subject to the continent’s Emissions Trading System (ETS) “withstand competition from products made in countries where polluting doesn’t come with the same price attached,” Politico reports.
“The point of the exercise is to both shield EU companies from unfair competition and to nudge other countries into setting their own price on carbon,” the news story states. “Non-EU producers can deduct the cost of CBAM if they have their own domestic carbon tax.”
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