New Dawn for Carbon Pricing as EU Targets Imports

The EU could become the largest economic entity to price the carbon impact of imported goods. A proposal is laid out for summer 2021, although there are many challenges. These include avoiding trade retaliation, aligning with existing support to local industrials, and gauging the effect on the bloc’s competitiveness.

Steel, cement, aluminum and electricity are among the sectors likely to be included at first. How they are impacted will depend on their carbon footprint and trade profile.