The European Union faces an uphill battle to convince trading partners that the world’s first levy on carbon imports is fair, workable and a necessary part of the bloc’s attempted green revolution as opposed to a protectionist tool.
The EU is due on July 14 to unveil a package of legislation to cut net greenhouse gas emissions by 55% by 2030 from 1990 levels.
As part of the plan, it will outline what it terms a carbon border adjustment mechanism (CBAM), designed to cut emissions by creating financial incentives for greener production and by discouraging “carbon leakage,” as the transfer of operations to countries with less onerous emission restrictions is known.
To read the rest of the article, please visit here