Finance
World’s First Carbon Border Tax Wouldn’t Be That Expensive
- Costs to China, U.S. from EU levy are minimal, study says
- Importers will also benefit from associated price increases
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The world’s first pollution-import levy, proposed by the European Union on goods from steel to aluminum, may not actually cost the bloc’s competitors that much, according to a study by environmental groups Sandbag and E3G.
While the politics surrounding levies on polluting industries are politically toxic, the costs involved are comparatively small. China, one of the biggest critics of the so-called carbon border adjustment mechanism, would by 2035 face net costs of around 2% on 5 billion euros ($5.9 billion) of iron and steel exports to the EU.