The European Union has introduced the world's first carbon tariff

The European Union has concluded an agreement on the introduction of a border tariff on carbon dioxide emissions and on the import of polluting goods: iron, steel, cement, fertilizers, aluminum and electricity. Some details of the law, including the date of its entry into force, will be determined later this week.

From now on, companies importing these goods to the EU will have to buy certificates covering CO2 emissions into the atmosphere. In particular, the same scheme of tariffs for CO2 emissions will be applied to both foreign firms and domestic EU enterprises, which are already required to buy permits if they pollute the environment.

According to Mohammad Shahim, the lead negotiator in the European Parliament, the border tariff will be crucial for the EU's efforts to combat climate change.

The tariff is aimed at preventing the undermining of European industry by cheaper goods produced in countries with weak environmental standards. In addition, the tariff will be applied to imported hydrogen.

It clarifies that some countries may be exempt from the tax if they pursue a similar EU policy on climate change, and on this basis they can evade paying the US tariff.

It is worth noting that the new law has attracted criticism from China – against the background of its escalating trade tensions with the United States, which arose due to States’ subsidies under the Law on Reducing Inflation for «green» technologies, which, according to the EU, can harm European firms.