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EU Eyes First-of-a-Kind Border Levy in Climate Fight

  • Power, aluminum and fertilizers to be subject to carbon levy
  • Carbon border adjustment mechanism to be unveiled on July 14
Steel Manufacture At Evraz Plc West-Siberian Metallurgical Plant
Photographer: Andrey Rudakov/Bloomberg
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The European Union is planning to slap an import levy on steel, cement and aluminum produced in countries with lower environmental standards, as it seeks to become a world leader on climate without harming domestic producers.

In a move no other country in the world has taken, the European Commission wants to introduce a system imposing a penalty for bringing into the bloc emissions embedded in goods, according to a person familiar with the proposals due to be unveiled next month. The levy will be based on carbon costs domestic producers already face, and will also affect fertilizers and electricity.