Deep divisions have emerged over the EU’s world-first carbon border tax as Brussels prepares to review the scheme just months before it enters into force.
The European Commission is due later this year to propose a major review of the carbon border adjustment mechanism (CBAM) — a tax on the emissions produced by imports into the bloc to protect EU industry from being undercut by cheaper, dirtier imports, which is due to come into effect next year.
The review will examine anti-circumvention measures to prevent companies from avoiding the levy, and will also set out proposals on various finished products that could be included within CBAM’s scope.
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