EU Launches World's First Carbon Border Tariff

The EU launched on Sunday the first phase of the first system to impose tariffs on carbon dioxide emissions on steel, cement and imported goods through Carbon Border Adjustment Mechanism (CBAM), according to Reuters.

With this agreement, the EU tries to prevent more polluting foreign products from entering into the zone.

The tariff raised concern among trading partners, especially China, which urged partners not to resort to unilateral measures.

The bloc will not begin collecting any CO2 emission charges at the border until 2026.

"The Union will not start collecting any fees for carbon dioxide emissions at the border until 2026."

Sunday, however, marks the start of an initial phase of the Carbon Border Adjustment Mechanism (CBAM) when EU importers will have to report the greenhouse gas emissions embedded during the production of imported volumes of iron and steel, aluminium, cement, electricity, fertilisers and hydrogen.

However, Sunday marks the start of the initial phase of the CBAM when 'EU importers must report embodied greenhouse gas emissions during the production of imported quantities of iron, steel, aluminium, cement, hydrogen, and fertilizers'.