Member countries have agreed to give the European Commission power to exempt goods from the EU’s carbon border tax — but placed a higher financial threshold on when that so-called kill switch could be exercised.
Cyprus tabled amendments to the Carbon Border Adjustment Mechanism at a meeting of EU finance ministers at the European Council on Friday, the most prominent of which was “Article 27a.”
The article initially gave the commission the unilateral right to temporarily exempt foreign industrial goods from the border tax if “unforeseen circumstances” were to transpire.
After CBAM levies on imports came into effect in January, capitals demanded the commission use it to stem rising prices for fertilizers from abroad that caused anger across the agricultural sector.
