International Finance
Energy

Spain writes to the EU proposing a ‘carbon border tax’ on power imports

The move reflects the country’s efforts to achieve environmental targets amid rising climate change

Spain’s acting government has approached the European Union to look into a potential carbon border tax on power imports, Reuters reported. The move is in the best interest of the bloc and to achieve environmental targets amid rising climate change challenges, the government said.

The Spanish ministers’ letter on Spain’s proposed carbon tax stated, “Customs duties are traditional own budgetary resources; therefore, a carbon border tax would perfectly fit within the traditional EU approach on this field.”

The letter was addressed to the Spanish European Commissioner Miguel Arias Canete and Pierre Moscovici,  European Commissioner for Economic and Financial Affairs, Taxation and Customs. The letter also said that it would help Europe to strengthen its industrial policy.

The ministers wrote, “If Europe ends up importing goods produced under lower climate standards, the emissions we avoid will be counterbalanced, or even overcome, by those generated in countries where goods are manufactured.”

According to the Financial Times, eight EU members have asked the heads of fellow member states to reduce carbon emissions to a net zero level by 2050. They’ve also proposed to reserve 25 percent of the bloc’s seven-year budget to projects that battle climate change.

“The recent surge in public protests is forcing European leaders to finally recognise the urgency needed to combat the climate crisis,” said Wendel Trio, director of Climate Action Network Europe. “At the Sibiu summit, all European leaders need to follow the call from the most progressive governments and publicly commit to put climate action at the heart of future EU cooperation.”

What's New

Start-up of the Week: Boosted by fresh funding, Glint Solar wants to rewrite Europe’s clean energy playbook

IFM Correspondent

Bahrain is on track to Carbon Neutrality by 2060: Minister Noor bint Ali Alkhulaif

IFM Correspondent

Egypt explores partnership with Siemens Energy for emissions reduction

IFM Correspondent

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.