Climate Politics

Europe Reaches Historic Deal to Put Pollution Price on Imports

  • Carbon border levy to shield EU industry during green shift
  • EU emissions measure comes amid rising global trade tensions

Smoke and exhaust rise from a large industrial complex surrounding Liuzhou Iron & Steel Co.'s facility in Liuzhou, China, on Monday, May 17, 2021.

Photographer: Qilai Shen/Bloomberg
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European Union policy makers reached a landmark deal to slap an emissions levy on some imports, in an attempt to ensure the bloc’s green overhaul doesn’t leave its industries at a disadvantage.

After hours of late-night negotiations, EU governments and the European Parliament thrashed out key details of the so-called Carbon Border Adjustment Mechanism. The idea is that carbon-intensive industries forced to comply with Europe’s world-leading climate laws won’t face unfair competition from producers operating in countries with weaker rules.