European Parliament backs amendment to EU carbon tariff

World World: The European Parliament has backed an amendment to the EU carbon tariff, under which companies importing less than 50 metric tons of goods per year will be exempted from the scheme. The change will keep more than 90% of importers out of the scope of this tax, simplifying its administrative process.

However, the effectiveness of the scheme will remain intact as only 10% of importers are responsible for more than 99% of total emissions. The rule will apply to imports of products such as steel, cement, aluminum and fertilizers and companies will have to buy permits for their carbon emissions from 2026. The start of the sale of permits under the scheme has been postponed to 2027.

Now EU member countries will give their approval to this proposal, after which the final rules will be negotiated with the European Parliament. The move aims to protect European producers from cheaper producers from countries where environmental rules are weak, so that investment does not go abroad.

This fee will be imposed on products that are imported and for which European companies already pay a fee according to emissions.