Brussels will review the climate tariff this year to avoid the loss of industry

The European Commission (EC) plans to review this year the climate tax it applies to imports of steel, cement, aluminium or fertilisers with the aim of minimising “unintended consequences” of this tariff and avoiding the closure or relocation of industrial plants.

“Europe needs to combat carbon leakage in its industries,” stresses the initiative that is part of the industrial roadmap, called the Competitiveness Compass, which was presented this Wednesday at a press conference by the head of the EU executive, Ursula von der Leyen, and the vice-president for industry, Stéphane Séjourné.

The revision of the Carbon Border Adjustment Mechanism (CBAM) is part of the chapter of this strategy dedicated to industrial decarbonisation and Brussels justifies it both by “the situation of energy-intensive industries” that are part of the CO₂ trading system and “the need to minimise cases of circumvention” of this tax and its “undesired consequences”.

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