Multiple countries are launching carbon markets as the European Union prepares to impose fees on imports of aluminum, steel, cement, fertilizers and other products that release significant greenhouse gases during production.
The EU tariff is slated to begin in 2026 but can be avoided for goods that are produced in nations requiring polluters to reduce or pay for planet-warming emissions.
“You’re essentially faced with the choice of paying the money to Europe, or collecting the money yourself,” said Nat Keohane, president of the Center for Climate and Energy Solutions. “It now makes a lot of sense to put that carbon policy in place in their own countries … and get the benefits of the revenues.”
The United Kingdom, which left the EU in 2020, is launching a program similar to the EU tariff that will put a carbon fee on imports of certain products. It’s expected to be operational in 2027.
