that iron and steel, aluminium, cement, fertiliser and electricity will be among the first industries that will face potential costs under the scheme. The revenue raised from the system will be mainly invested in the European Union’s green transition.
On the other hand, businesses which import products that have already paid a carbon price in their home country can obtain deductions in the EU, although this is a difficult case for goods produced in countries such as Australia and India, which have either no or outdated carbon pricing schemes in place.
However, the idea of carbon tariffs is not new as some of the most developed economies have already begun heading down that path. For instance, at the G7 meeting held in Cornwall last month, leaders of the member states backed the launching of carbon pricing policies to maximise their efforts to decarbonise economies. On the other hand, US Democrats on Thursday, introduced a surprise tax on imports from countries without aggressive climate change policies.
Therefore, experts point out that it is a matter of when, not if, new carbon policies and tariffs are launched. Therefore, the governments and business communities of China, India and even Australia should be prepared for these changes in the global market.
