The European Union has started the implementation of a world-first carbon border tariff in a bid to reduce the environmental impact from imported goods such as steel and cement.
Introduced on Sunday, the EU’s tariff will initially require those importing cement, iron and steel, aluminium, fertilisers, electricity and hydrogen to report production emissions when entering the bloc.
A charge will then ultimately be placed on the emissions from inbound goods come 2026, with importers having to buy certificates based on the tonnage of carbon released during production.
“Climate change is a global problem that needs global solutions,” the bloc said in a statement.
The move will aim to prevent so-called “carbon leakage”, which sees companies move operations to areas with less stringent climate policies.
Import prices will equate to carbon costs for domestic production, which are determined by the EU’s emissions trading scheme.
"[The] Carbon Border Adjustment Mechanism is not about trade protection,” European economy commissioner Paolo Gentiloni said.
“It is about protecting the EU's climate ambition and seeking to raise the level of climate ambition worldwide."