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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below
🗞️ Driving the news: The European Union will initiate the first phase of its pioneering carbon border tax next month
• Under this tax, companies importing specific goods into Europe will need to report their CO2 emissions, with non-compliance resulting in financial penalties
🔭 The context: The tax is designed to protect EU industries from being outcompeted by foreign firms with higher emissions
• By 2026, imported goods will be subject to a CO2 fee matching what European firms pay in the EU's carbon market
🌍 Why it matters for the planet: The EU is leveraging its market influence to push international companies towards reducing emissions
• This effort underscores the global shift towards greener practices and the collective responsibility of all nations in battling climate change
⏭️ What's next: While the initial phase requires only reporting, the full CO2 levy will come into play by 2026
• There are considerable concerns, especially from developing countries, about the impact of this tax on exports to the EU
💬 One quote: "The transitional phase needs to be used to close loopholes and establish more robust rules to tackle circumvention," (Adolfo Aiello, Eurofer's Deputy Director General)
📈 One stat: The China Iron and Steel Association's Secretary General, Jiang Wei, predicts that the new policy could increase the cost of Chinese steel exports to the EU by 4-6%
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