Comuniq.EU

EU carbon border tax to raise about 10 billion euros annually

cde.news desk 7 July 2021, 13:40 · 1 min read

epa06712491 European Union flags fly near the seat of the European Commission at the Berlaymont building in Brussels, Belgium, 05 May 2018. EU institutions in Brussels opened their doors to the public on 05 May to celebrate 'Europe Day'. EPA-EFE/JULIEN WARNAND

Brussels expects to raise about 10 billion euros ($11.82 billion) a year from a carbon tax on imports as part of its effort to tackle global warming, the Financial Times reported.

The money will be used to repay hundreds of billions in EU joint recovery debt, the newspaper said, citing details of the European Union’s upcoming Carbon Border Adjustment Mechanism (CBAM) laid out in a legal text.

The European Commission intends to introduce the tax gradually starting in 2023 to allow businesses a “transitional” period to adjust, the report added.

Photo: EPA-EFE/JULIEN WARNAND