In the U.S., where climate policy has been highly politicized, the concept of a carbon tariff has recently emerged with rare bipartisan support.
1. The EU has implemented a carbon tariff policy that requires foreign companies to report greenhouse gas emissions associated with certain goods.
2. Imports that do not meet the EU’s emissions standards will face an additional fee starting in 2026.
3. The policy aims to reduce emissions in industries that are difficult to decarbonize, such as cement and steel manufacturing.
4. The tax has faced criticism from countries like China and Russia, but supporters argue it levels the playing field for EU companies and incentivizes emission reductions.
5. The concept of a carbon tariff has gained bipartisan support in the United States as a way to protect domestic manufacturers and promote clean production.