Polluting sectors such as steel, cement and aluminium should not pay for the carbon emissions of their exports, the commission will propose
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I’m no environmental scientist but, isn’t the point of a carbon tax to get polluters to pollute less? What’s the point of it if big polluters get a pass anyway?
That was my first response too, but on second thought, this may be a good balance between keeping European industry strong and green incentives:
- EVERY COMPANY pays carbon tax over what they sell in Europe: the EU made sure that carbon tax is paid over imports too so it is not worth it to companies who want to sell in EU to move production out of Europe
- By not taxing exports, European heavy industry gets to compete fairly outside Europe too: American companies don’t pay European carbon tax on what they sell in the US. If we would tax European heavy industry exports, they would be at a severe disadvantage.
European heavy industry isn’t doing great overall. This is partly their own fault: lobbying has focused on keeping grey tech alive instead of enabling a green transition, but also largely because of high wages and regulation in Europe.
We need to push European heavy industry through the energy transition, not into bankruptcy. I’d rather do the energy transition a little slower than be completely dependent on American and Chinese companies for steel, aluminium, etc.
And I’ve been arrested at many climate protests, so don’t tell me I don’t care enough about the climate!
Also of note is that the dirtier factories here are still sparkling clean compared to those elsewhere so by removing this tax for exports the overall energy bill for heavy industry should see an improvement as more is sourced from relatively cleaner European factories
Your explanation makes sense. I agree I don’t want to be reliant on American and Chinese metal, as long as we’re careful to not slow down the energy transition too much.
Then again, I’m no expert.
