Europe Union restricts imports, demands account of carbon dioxide emissions by trading partners

Europe takes climate fight global as carbon border tax goes live

The Carbon Border Adjustment Mechanism enters a trial phase on Sunday.

The EU's effort to become "climate neutral" is kicking in -- the bloc's carbon border tax enters a trial period, which is likely to raise tensions with key trading partners. The Carbon Border Adjustment Mechanism -- or CBAM -- was adopted last year with the aim of ensuring that goods manufactured in Europe, and subject to the EU's Emissions Trading System, which sets a price on carbon emitted, will be able to withstand competition from products made in countries where polluting doesn’t come with the same price attached. Starting October 1, the EU's trading partners will have to report the greenhouse gas emissions tied to their exports of iron, steel, cement, aluminum, fertilizer, hydrogen and electricity.

Europe takes climate fight global as carbon border tax goes live – POLITICO

 

Just creating even more incentive for nations to instead start trading with Russia again.

 

Hardly. Do you understand the article? This applies to things that Europe imports, that it buys from other countries. So you are suggesting that Russia would purchase all or much of the steel, aluminum, cement, fertilizer, hydrogen & electricity, that the EU currently does?

Rather, this is akin to when California has in the past raised its own standards which, because it is such a lucrative market, manufacturers complied with, making the California requirement, the defacto national standard. I applaud this step at turning the spoken intentions of the many, and the baby step actions of the few, into tangible policies which will affect how companies around the world conduct their businesses.

 

No. As I undertand it, Russia has been working on producing such things locally. Nations that want to buy products that are made in Europe are going to be looking for alternatives now since EU goods are going to be more expensive due to their increased cost of importing the raw materials for those goods. Russia, not having that increased cost, is going to thus be a more competitive producer, simply because its not adding a plant food tax to the cost of everything it produces.

 

But the news article basis for this thread, is that the EU will begin requiring anyone wanting to export into, to sell the EU, any of these things, to provide the carbon data, which would then presumably be used to add tax onto these items, making them less attractive to import, rather than to buy from a local producer, who is compliant with the standard, which adds extra production cost, but which then avoids the tax against non-compliance. While it wasn't a perfect analogy-- look back to my first post, to which I'd added a paragraph, after you'd quoted it.

 

Those countries that are effected just need to slap import tax on goods from Europe, and look to other countries for trade deals elsewhere.

 

I'll be interested in seeing how this works out. It could also be a backhanded way to encourage domestic production by restricting imports under a "green" excuse.