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illuminem summarizes for you the essential news of the day. Read the full piece on Wired or enjoy below
🗞️ Driving the news: On October 1, the European Union began a pioneering initiative, introducing a continent-wide carbon border tax on imported goods
• This large-scale experiment might prompt global industries to adopt cleaner production methods and inspire other nations to establish similar carbon taxes
🔭 The context: The Carbon Border Adjustment Mechanism (CBAM) imposes an import tax on carbon-rich products such as cement, steel, and electricity
• This mechanism addresses the imbalance created when EU industries, already subject to carbon pricing, compete with imports from countries without comparable carbon costs
🌍 Why it matters for the planet: The EU's bold move not only safeguards its industries but also seeks to elevate global environmental standards
• By pioneering this approach, the EU aims to galvanize a universal shift towards European-style emissions trading systems and broader global decarbonization
⏭️ What's next: Currently in a 'soft-launch,' the CBAM will require emission declarations on imports from October 2023 to December 2025
• Post-2026, imports will necessitate CBAM certificates for embedded emissions. The tax's global impact will unfold in the subsequent years of its full enactment
💬 One quote: “The EU is catalyzing upskilling of firms worldwide in areas they hadn’t ventured on a mandatory basis,” (Emily Lydgate, a professor at the University of Sussex)
📈 One stat: While only around a quarter of the global populace lives in regions with some carbon pricing, the EU's new policy will encompass nearly 45% of its total greenhouse gas emissions
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