The European Union (EU) struck a political deal on Tuesday morning that seeks to impose tariffs on carbon dioxide emissions made by manufacturers of imported goods that are deemed to be polluting, a first of its kind carbon tariff.
The members of the European Parliament arrived at an agreement with the European Council on the EU Carbon Border Adjustment Mechanism (CBAM) aimed at supporting European industries as the region pushes forward with its decarbonization plans. The deal seeks to equalize the price of carbon paid for EU products operating under the EU Emissions Trading Scheme (ETS) and imported goods.
“This will be achieved by obliging companies that import into the EU to purchase so-called CBAM certificates to pay the difference between the carbon price paid in the country of production and the price of carbon allowances in the EU ETS,” according to a news release on Dec. 13….