‘Protective’ border carbon tariffs gaining currency
EU edges closer to import duties based on carbon content amid concern about impact on international trade
Political discussion of Europe’s proposed Border Carbon Adjustment Mechanism (BCAM) has ramped up in recent weeks, well before any legislative proposal is expected to be published. The European Parliament last week urged the Commission to implement a BCAM by 2023. The UK too has proposed discussions on border carbon tariffs as part of this week’s meeting of G7 leaders while, most recently, Japan’s government revealed it is considering introducing a carbon border tax. The debate has been given renewed impetus by the election of Joe Biden to the US presidency, with a mandate to renew his country’s commitment to climate action. Biden’s hawkish stance on climate issues improve the outlook for a
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