BRUSSELS — Several major EU countries are advocating that the bloc’s carbon border tax be expanded in the coming years to help repay over €300 billion in pandemic-era debt.
France, Italy and Poland are the big hitters behind the push. They argue that the EU desperately needs new revenue streams and that the carbon border tax — which takes effect for specific sectors in 2026 — is one solution.
The levy will initially cover highly polluting sectors like steel, cement and aluminum, as well as electricity and hydrogen, and aims to ensure imported goods pay a carbon price equivalent to EU standards. But the scheme, formally known as the Carbon Border Adjustment Mechanism (CBAM), also includes a built-in 2025 review that will explore a possible expansion to other sectors and products.
Proponents are now making their case, spying an opening with the upcoming review and looming talks over the EU’s next seven-year budget, which will determine how the bloc repays the joint debt it took on in 2021 to stabilize a Covid-19-battered economy.
