EU to Extend Carbon Tax to Fasteners in October 2023
After overnight negoiations, EU countries and European Parliamenet representatives reached an agreement on December 13,2022, to impose to tax on CO2 emissions from imported steel and cement and other pollting goods, extending the scope of application from upstream products such as steel, aluminum and cement to downstream products such as screws and bolts. The new mechanism is scheduled to be implemented on a trial basis from October 1, 2023.
The agreement, called the Carbon Border Adjustment Mechanism (CBAM), is a new creation of the European Union in light of the global trend of carbon reduction, and was proposed by the Executive Committee in July 2021. Since EU has set strict carbon reduction requirements for local industries with high carbon dioxide emissions, in order to prevent enterprises from increasing costs due to carbon reduction and end up with uncompetitive prices against imported products, CBAM was created, requiring purchase of carbon reduction certificates for foregin high carbon emission products entering the EU market.
From: Fasteners World Inc