The EU will apply a CO2 tariff in three years

The president of the European Commission, Ursula von der Leyen, on Tuesday called on the international community to equip itself with mechanisms to put a price on carbon dioxide emissions and has warned that the European Union will begin tax CO2 of certain products in its borders “in three years”.

Von der Leyen has indicated that this mechanism “will be tested for 3 years before it begins to apply” and will be gradually expanded.

“It is important that efforts are not undermined by the risk of carbon leakage. That is why our plan for 2030 includes a border adjustment mechanism,” said Von der Leyen on Tuesday at an event within the framework of the climate conference COP26.

The president of the Community Executive recalled that the EU has had an emissions trading market since 2005 in which 11,000 industrial plants and 500 airlines must pay for each ton of CO2 emitted, which the Commission wants also extend to the air conditioning of buildings and road transport.

Currently, the ton of CO2 is paid at about 60 euros (about $ 69) and in addition, the Commission has proposed to the EU Member States and the European Parliament the creation of a system to also tax the CO2 of certain products entering the European market.

“Initially it will apply to a limited number of products that pose a high risk of carbon leakage, specifically cement, iron, steel, aluminum, fertilizers and electricity, “he said.

This mechanism is still far from being a reality, but is a tool that the EU uses to pressure the international community so that too severe greenhouse emissions.

“We see this carbon boundary adjustment as a tool for climate policy. The best mechanism, in my opinion, would be one that is not applied because all our commercial partners would also set a carbon price, “he assured.