London Daily

Focus on the big picture.
Monday, Aug 10, 2026

EU countries back plan for world-first carbon border tariff

EU countries back plan for world-first carbon border tariff

The EU says the main objective is to avoid ‘carbon leakage’ and encourage partner nations to establish carbon-pricing policies.

European Union countries have backed the bloc’s plan to impose a world-first carbon dioxide emissions tariff on imports of polluting goods, although the finer details will need to be worked out in upcoming negotiations.

The EU wants to introduce CO2 emissions costs on imports of steel, cement, fertilisers, aluminium and electricity, a move aimed at protecting European industry from being undercut by cheaper goods made in countries with weaker environmental rules.

The costs would not kick in until 2026, according to the European Commission’s proposal for the measure, but a three-year transition phase would begin in 2023 – so EU countries and the European Parliament are racing to negotiate and approve the final rules in time.

“The main objective of this environmental measure is to avoid carbon leakage,” a statement from the EU said on Tuesday.

“It will also encourage partner countries to establish carbon pricing policies to fight climate change.”


Finance ministers from EU countries have agreed on their negotiating position for the upcoming talks.

“We’re making the effort to reduce carbon emissions in industry … we don’t want these efforts to be of no avail because we import products which contain more carbon,” French Finance Minister Bruno Le Maire said.

The border levy is part of a package of EU climate change policies designed to cut the bloc’s greenhouse gas emissions by 55 percent by 2030 from 1990 levels.

France, which currently chairs meetings of EU ministers, has long supported the levy and prioritised striking a swift deal on it.

The European Parliament plans to confirm its position by July, meaning negotiations between Parliament and EU countries on the final rules could begin after summer.

Europe’s climate goals will require huge investments from industry in green technologies like hydrogen, and impose higher CO2 costs on polluters. The border levy aims to ensure companies do not leave Europe for regions with lower costs.

The measure would gradually replace the free CO2 permits industries receive under the EU carbon market to help them stay competitive. How quickly those permits should end is contentious, and ministers left the details to be negotiated in separate talks on EU carbon-market reforms.

The European Parliament’s lead legislator on the border levy, Mohammed Chahim, wants to end free CO2 permits by 2028. The European Commission had proposed 2035, while some industries are lobbying to keep them.

The issue of whether revenue from the CO2 levy will go into the EU budget will also be discussed later.


Newsletter

Related Articles

0:00
0:00
Close
Alleged Cartel Boss Daniel Kinahan Extradited From Dubai to Face Criminal Charges
AI Chatbots Challenge Traditional News Consumption and Raise Job Concerns
Andy Burnham Government Promises Crackdown on Exploitative Business Practices
UK University Funding Model Faces Growing Pressure From Unsustainable Student Debt
Government Urged to Subsidise Energy Bills for Vulnerable UK Households
UK Military Spending Plans Threaten to Deepen Infrastructure Funding Gap
Israeli Government Rejects US Peace Framework for Gaza
New Labour Government Signals Closer Economic and Strategic Ties With European Union
Amber Heat-Health Alerts Issued Across England as Temperatures Threaten 36 Degrees
UK Economy Expected to Grow Despite Energy and Supply Chain Shock From Iran Conflict
Foreign Social Media Accounts Drove Disinformation During Belfast and Southampton Riots
Record Number of Migrants Cross English Channel in Single Vessel as Smugglers Deploy Mega-Dinghies
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Reports of Mark Zuckerberg-Linked Superyacht Declining Rescue Assistance Draw Maritime Scrutiny
Preserving Three Banksy Artworks in London Has Cost Taxpayers Nearly £150,000
Four Ugandan Athletes Disappear From Delegation After UK Sporting Events
French Authorities Report Channel Interventions as Cross-Border Migration Dispute Continues
Home Office Admits Error in Settled Status Case Involving Long-Term Italian Resident
Unite Calls for Independent Review of UK Budget Watchdog's Fiscal Forecasting Rules
Thinktank Calls for £175 Annual Energy Bill Cut for Low-Income Households
Foreign-Linked Social Media Accounts Amplified Recent Unrest in Belfast and Southampton, Analysis Finds
London Mayor Sadiq Khan Orders Westminster to Drop Proposed Soho and West End Hospitality Ban
Royal Navy Deployments to Monitor Russian Activity in UK Waters Rise 25 Percent
UK Economy Expected to Grow 0.4 Percent in Second Quarter Despite Geopolitical Pressures
Andy Burnham Launches Cost-of-Living Measures Targeting Subscription Traps and Misleading Discounts
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
Meta Ordered to Pay $567 Million and Change Facebook and Instagram Safeguards for Children
Up to only 10 Months in Prison for Swedish Officer’s Murderer Sparks Anger
Success: Nvidia Turned Gaming Chips Into the Engine of the AI Boom
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Air Traffic Control Outage Grounded Flights Across the Midwest
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
Partial Solar Eclipse Expected to Draw Interest Across Southwestern UK
UK Graduate Job Postings Fall 7% as Entry-Level Opportunities Remain Scarce
UK Private Sector Returns to Growth as July Activity Reaches Highest Level Since April
UK Summer Drought and Wildfires Raise Pressure for Stronger Environmental Measures
UK Household Credit Stress Rises as Credit Card Lending Growth Hits 12.5%
London Stock Exchange Revises AIM Rules to Make Growth Capital More Accessible
NHS England to Expand Mental Health Services With 155 New and Upgraded Facilities
UK Overhauls £90 Billion Public Procurement System to Reward Domestic Jobs and Apprenticeships
Andy Burnham Holds Strong Approval as Labour Maintains Narrow Lead Over Reform UK, Opinium Finds
×