EU carbon border costs to apply on steel, cement, power

The European Union plans to impose carbon emission costs on goods including steel, cement and electricity, reported Bloomberg late on Wednesday.

The European Commission will propose its carbon border tariff policy next month as part of a move to put EU firms on equal footing with competitors in countries with weaker carbon policies.

Citing a draft of the proposal, Bloomberg reported that the border levy would be applied in full from 2026, after a phase-in from 2023.

Importers would be required to buy digital certificates, with each one representing a tonne of carbon dioxide emissions embedded in their imported goods.

Annually by the end of May, importers must report the amount of emissions embedded in the goods they imported into Europe the year prior, plus the number of border levy certificates that they surrendered.

The Commission is considering whether countries whose climate policy ambitions match those of the EU may be able to dodge the border fee.