EU's new green tariff' rules on high-carbon goods come into force

"The biggest shake-up of green trade rules for decades comes into force today, as companies selling steel, cement and other high-carbon goods into the EU will have to prove they comply with low-carbon regulations or face fines. But a lack of clarity on how the rules will be applied, and the failure of the UK government to strike a deal with Brussels over the issue, could lead to confusion in the early stages, experts warned."

"Many countries expected the EU to back down on the green tariff rules, in the same way that other environmental regulations have recently been watered down, but the bloc has pressed ahead despite protests from China, the US, Australia and others. Chinese steel could lose its price advantage over European steel, for instance. However, that could create a glut of steel and other high-carbon products, which some fear could be dumped at low prices into the UK and other markets instead."

The EU's carbon border adjustment mechanism (CBAM) comes into force, requiring companies selling steel, cement and other high-carbon goods into the EU to prove compliance with low-carbon regulations or face fines. Lack of clarity on rule application and the UK government's failure to strike a deal with Brussels could cause early confusion. The European Commission says CBAM levels the playing field and supports industrial decarbonisation. Several countries, including China, the US and Australia, protested the rules. The measures could erode Chinese steel's price advantage but risk creating a glut of high-carbon products dumped into other markets. The UK plans its own CBAM next year.

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