EU carbon border tax to raise about 10 billion euros annually

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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