Economía

The EU carbon tariff scheme comes into force

The mechanism that will tax metals and other commodities seeks to avoid carbon leakage and equalize their price between national products and imports.The mechanism that will tax metals and other commodities seeks to avoid carbon leakage and equalize their price between national products and imports.

  • 04/10/2023 • 18:26

Starting this Sunday, the European Union (EU) will apply a tariff scheme on imports of cement, iron and steel, aluminum, fertilizers, electricity and hydrogen, sectors that are considered intensive in carbon emissions. The Carbon Border Adjustment Mechanism (CBAM) seeks to prevent carbon leakage and equalize its price between domestic products and imports. In this way, the EU seeks to ensure that its climate policies are not undermined by the relocation of production to countries with less ambitious ecological standards, or by replacing local products with cheaper, but more carbon-intensive imports. Those who export this set of goods to the EU will have to report on the volume of greenhouse gas emissions generated during their production, with the first report submitted before January 31 of next year. The first year of application There will be a series of flexibilities, such as the use of default values for the notification of embodied emissions and the possibility of using the monitoring, notification and verification standards of the country of production, the DPA agency specified. This transition phase will serve as a learning period for all stakeholders and will allow the European Commission to collect useful information on embodied emissions to refine the methodology for the final period, starting in 2026, at which point direct implementation will begin. the rates, which would be close to 100 euros per ton of emissions. Various analysts warn that the initiative could lead to a price increase in Europe, even before the tariffs come into effect. "If actions are not taken to resolve the administrative problems that importers will begin to face, there is a risk that CBAM will represent a stumbling block in the European economy," Anuj Saush, from the NGO The Conference Board, told the specialized portal SupplyChain. He specified that the categories of goods represent 4.95% of all EU imports, valued at 133.2 billion euros.