The European Union took a step forward to imposing a carbon tax on imports of energy-intensive goods such as steel and cement after striking a deal with EU members on Tuesday.
Negotiators from EU countries and the European Parliament reached a deal at around 5am in Brussels, on the carbon dioxide emissions tariff on imports of iron and steel, cement, fertilisers, aluminum, and electricity.
Companies importing those goods into the EU will be required to buy certificates to cover their embedded CO2 emissions. The scheme is intended to apply the same CO2 cost to overseas firms and domestic EU industries – the latter of which are already required to buy permits from the EU carbon market when they pollute.