Australia is considering a carbon tax mechanism for steel and cement imports, similar to the European Carbon Border Adjustment Mechanism (CBAM). Energy Minister Chris Bowen believes this mechanism should work similarly to the European CBAM, but with the Australian market's specifics.
The Australian government will hold two rounds of consultations, with a report on the mechanism's work expected in the first half of 2024. The report will help the government decide whether to adapt CBAM to Australian realities or explore other ways to decarbonize the industry. It will gradually integrate into EU market processes from October 1, 2023, with importers reporting on their carbon footprint from January 1, 2024, and data in tax returns from January 1, 2026.