The European Union has reduced its CO emissions2 25% since 1990, but has weakened its industry. Its 12,000 high-emitting companies (steel, cement, power plants, refineries, chemicals, i.e. 45% of the Union’s greenhouse gases) are indeed subject, since 2009, to carbon quotas, rights to pollute, become expensive. The EU refuses that non-European manufacturers, particularly Chinese, continue to supply the Old Continent any longer by polluting them, without limit.
Under the presidency of France, the 27 Member States agreed on Tuesday 15 March to create a “carbon border adjustment mechanism” (MACF) which will apply to imports of cement, aluminum, fertilizer, electricity, iron and steel.
In addition to an incentive to pollute less elsewhere in the world, there will be a minimal collateral effect: Europe will derive a “climate customs duty”, valued at one billion euros.
Removal of carbon quotas
The idea was promoted by the European Parliament in 2021, on the initiative of Yannick Jadot. Then by the Commission, in the “Green Deal” of 14 July. The European Parliament must then decide, in June, on the copy of the Council.
Among the shortcomings – due to necessary compliance with the World Trade Organization – the project affects raw products, not manufactured products. The tax therefore hits imports of steel by a European car manufacturer… but not those of Chinese cars.
At the same time, the EU will have to organize the elimination of the carbon quotas held by the 12,000 European companies. However, the ton of CO2 has gone from nothing in 2009 to nearly €100 today.
–
