tariffs from 2026, on goods from five sectors, namely aluminium, iron and steel, fertilizers, cement and electricity. Therefore, it is evident that this idea of taxing carbon-intensive imports is attracting the attention of the international community and may hurt Canada’s export-oriented industries, despite the country’s own carbon tax.
These concerns were highlighted in a recent report issued by the Royal Bank of Canada, which studies the threats posed carbon border adjustment mechanisms to the economy of the North American nation. According to a senior director of RBC’s economic analysis outfit, who also co-authored the report, pointed out that although the plan proposed by the EU does not cover Canada’s heavy carbon-emitting industries such as mining and energy, however, there is no guarantee that the measures would not be extended to such industries in the future.
“[…] there’s a big question mark over the extent to which border carbon taxes can, in practice, align with theory,” she said. “There could be a lot of political pressure to use this to further (domestic interests), therefore polluting the intended impacts.”
Over the recent years, climate experts have been…
