EU climate protection

CO₂ border levy: many importers exempt

Customs officers in the port of Rotterdam (Netherlands)

(Bild: AFP/Simon Wohlfahrt)

In order to prevent the migration of European companies and protect industry from cheaper competition, the EU wants to levy a border tax on imports of CO2-intensive products from 2026. However, the majority of importers will apparently remain exempt from the levy.

From 2026, the CO₂ border tariffs are intended to protect European companies from unfair competition from countries that, unlike Europe, do not impose climate protection levies. The EU requires companies in the EU that import aluminium, cement, electricity, fertilizers, iron, steel or hydrogen to offset the CO₂ emissions in their imports via the levy. This is also intended to prevent the relocation of production to non-European countries. The levies are paid via emission certificates that importers have to purchase in Europe.

Alloying work in China

(Bild: AFP)

Levy obligation only from imports of more than 50 tons per year
However, Brussels wants to relieve the majority of European companies. According to reports, only companies that import more than 50 tons per year will be covered by the system. 

It is expected that importers will demand corresponding price reductions from their suppliers in China, South America or the USA or switch to products from Europe. Production here is already burdened with the purchase of CO₂ pollution rights.

Expansion to other products in 2030
While initially particularly CO₂-intensive goods such as cement or steel will be subject to charges, the scope will be extended to all industrial goods by 2030. However, import companies already have to collect data to determine the amount of the levy on products.