Latest news with #carbonborder
Daily Mail
5 days ago
- Business
- Daily Mail
BREAKING NEWS Anthony Albanese's government considering a new Donald Trump style tariff: What it means for you
Teaming up with other regional economies to impose tariffs on carbon-intensive iron and other goods has been pitched as key to Australia's future as a major player in emerging green industries. The case for Asian carbon border tariffs has been made by think tank Climate Energy Finance days after the federal energy minister signalled openness to charges at the border on emissions-heavy steel and cement. Carbon border adjustment mechanisms, known as CBAMs, can level the playing field for heavy industries subject to domestic carbon pricing. Without them, steelmakers and other producers may choose to move factories offshore to countries with less stringent regulations on pollution, a problem known as 'carbon leakage'. The European Union has been leading the charge and its carbon border adjustment mechanism is scheduled to come into full force in 2026. There was a strong case for an Asian equivalent building on the 17 domestic carbon pricing schemes already across the region, Climate Energy Finance net-zero transformation analyst and report author Matt Pollard said. This includes Australia, which forces big polluters to pay a carbon penalty if their emissions are above a certain threshold via the safeguard mechanism. China, South Korea, Japan and Singapore also have carbon pricing in some shape or form. With most emissions-intensive goods produced in Asia for export traded within the Asia Pacific, a regional border mechanism would effectively function as a price on carbon in international trade. 'As a result, lower-emission products can more effectively compete against higher-emissions products in a global market,' Mr Pollard explained. The think tank wants Australia to spearhead the conversation as part of its bid to co-host the COP31 climate summit alongside Pacific nations. Climate Change and Energy Minister Chris Bowen would not rule out the possibility of carbon tariffs on specific sectors, such as steel and cement, during an interview on ABC's Insiders on Sunday He cited an ongoing review into carbon leakage headed by Australian National University climate change economics expert Frank Jotzo. 'We want to ensure Australian industry is best placed to compete in a decarbonising world,' he said on Sunday. Opposition energy and emissions reduction spokesman Dan Tehan criticised the minister for floating the idea immediately after winning the federal election. 'He's put electricity prices up, he's put gas prices up, and he's put emissions up, and now he wants to follow Donald Trump's lead and put in place tariffs,' Mr Tehan said on social media platform X on Sunday. Mr Pollard rejected the comparison to the US president's 'erratically applied, economically and industrially destructive and investment-deterring' tariff agenda. 'Carbon border adjustment mechanisms are not discriminatory, and enhance globalisation, international collaboration and climate action - which is intrinsically a global problem,' he said. While they are tariffs by nature, carbon border adjustment mechanisms have the opposite objectives of the Trump administration's trade policies that are designed to 'enhance protectionism and isolationism'. The push for regional Asian carbon tariffs was welcomed by groups like clean energy industry body Smart Energy Council and economic think tank The Superpower Institute.
Reuters
22-05-2025
- Business
- Reuters
EU Parliament backs exempting 90% of companies from carbon border levy
BRUSSELS, May 22 (Reuters) - The European Parliament backed changes on Thursday to the European Union's carbon border tariff that would exempt from the scheme companies that import less than 50 metric tons per year of relevant goods. The proposed changes exclude more than 90% of importers from what will be the world's first carbon border tariff, or Carbon Border Adjustment Mechanism, sparing them time-consuming bureaucracy, the European Commission has said. It said, however, the scheme would not lose its impact as the remaining 10% of importers are responsible for more than 99% of the emissions associated with imports covered by the carbon border tariff. The Commission proposed the changes in February to replace the existing rules, under which all individuals or companies importing CBAM-covered goods with a value above 150 euros ($170) would have had to pay the levy from next year. Companies will have to buy permits to cover the carbon emissions of importing products including steel, cement, aluminium and fertilisers, starting from the year 2026. The changes also include deferring until 2027 the launch date for sales of those permits. Following Thursday's European Parliament vote, EU countries are due to approve their position on the changes next week, before negotiating the final rules with EU lawmakers. Countries are expected to also back the proposal to exempt 90% of companies, EU diplomats told Reuters. The carbon border tariff is designed to shield European producers against cheaper rivals in countries with less ambitious climate laws, and prevent them shifting investments abroad to countries including the U.S., where President Donald Trump's administration is aggressively rolling back regulation. The levy will impose a fee on imported goods that is equivalent to the one paid by EU-based companies that under the EU carbon market already pay for each ton of CO2 they emit. ($1 = 0.8855 euros)
