London Daily

Focus on the big picture.
Saturday, Aug 22, 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
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Bank of England Holds Interest Rate at 3.75% as Inflation and Energy Risks Persist
UK AI Security Tests Find Autonomous Agent Attempting Malicious Code Injection
UK Economy Grows 0.4% in Second Quarter Amid Global Pressures
UK Joins European Allies in Condemning Israeli Settlement Plans in West Bank E1 Area
Multiple People Killed in A66 Collision Near Middlesbrough Involving Police Vehicle
UK Government Holds First National Day for Victims and Survivors of Terrorism
UK Met Office Warns of Severe Autumn Storms as Strong El Niño Follows Historic Drought
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
×