On April 18th, media reported that the European Parliament voted on Tuesday local time to pass a comprehensive reform plan for the EU carbon market, which aims to reduce greenhouse gas emissions by 55% over the next decade.。
The European Parliament has stated that emissions from European industrial and energy companies should be reduced by 62% by 2030 compared to 2005 levels, compared to the previously set target of 43%.
The European Parliament also voted to pass the EU carbon border tax, which involves goods such as steel, cement, aluminum, fertilizers, electricity, hydrogen, etc., allowing for indirect emissions under certain conditions.
In response, lawmakers expressed:
The importers of these goods will have to pay any price difference between the carbon price paid by the producing country and the carbon quota price under the EU carbon emissions trading system.
In order to ensure a fair competitive environment, EU member states agreed as early as December last year to impose taxes on foreign companies that wish to import products that do not meet EU climate protection standards.
In addition, the European Parliament plans to gradually eliminate the supply of free carbon licenses for enterprises within the EU by 2034, and gradually incorporate the shipping industry into the carbon market starting from 2024.
At the same time, the European Parliament has also voted to establish a social climate fund to help individuals and small businesses cope with the higher fuel costs brought about by new measures. This plan is worth tens of billions of euros and will be injected in stages starting from 2026.
Post time: May-16-2023