EU countries agree on carbon tax

The European Council announced that member states have agreed on a regulation called the Border Carbon Regulation Mechanism (CBAM).

In the statement, it was noted that the mechanism in question was prepared to protect the environment and its main purpose was to prevent carbon leakage.

Emphasizing that countries are encouraged to create carbon pricing policies to combat climate change, it was stated that this mechanism targets the import of carbon-intensive products produced outside the EU.

In the statement, it was stated that products such as cement, aluminum, fertilizer, electricity, iron and steel coming from third countries will be subject to carbon tax.

Noting that goods with a value of less than 150 euros will be exempted from the said obligations, it was emphasized that approximately one-third of the shipments to the EU fall into this category and this exemption will alleviate the administrative burden.

In the statement, it was stated that the revenues of the said mechanism and the issues of cooperation with third countries are still being discussed in the Council, and that negotiations will be started with the European Parliament (EP) after sufficient progress is made on these issues.

With the Border Carbon Regulation Mechanism, the EU aims to monitor and reduce imports of goods with high carbon footprints from countries that do not have a carbon pricing system.

In order for the said mechanism to come into force, it must be officially approved by the European Council and the EP.