European Green Deal: The carbon tax at borders comes into force to fight climate change
Since October 1, the European Union has implemented a flagship measure of its European Green Deal: the carbon border tax. This initiative aims to fight climate change by encouraging foreign companies to reduce their CO2 emissions when manufacturing imported products. The goal is to achieve carbon neutrality on the continent by 2050.
The Carbon Border Adjustment Mechanism (CBAM) requires companies that import carbon-intensive products, such as steel and aluminum, to report CO2 emissions linked to their production abroad. From 2026, these emissions will be taxed. This measure aims to avoid “carbon leakage”, that is to say the movement of production to countries where environmental standards are less strict.
However, this tax has attracted widespread criticism from European businesses. Some fear that it will penalize their competitiveness on international markets. Others say the real solution lies in massive investments in more environmentally friendly technologies.
Despite these reluctances, the carbon tax at borders is considered an essential measure to fight against climate change. It encourages companies to review their practices to reduce their CO2 emissions and thus promotes a transition to a greener economy. In addition, it guarantees fair treatment between local producers who respect the environment and importers who are less concerned about their impacts on the climate.
This measure will be implemented gradually until 2026, when importers will start paying the tax on CO2 emissions. In the following years, the price of this tax will gradually increase, thus encouraging companies to accelerate their transition to more sustainable practices.
In conclusion, the carbon border tax is a key element of the European Green Deal to combat climate change. Despite criticism, it encourages companies to reduce their CO2 emissions and promotes the transition to a greener economy.