· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Politico or enjoy below:
🗞️ Driving the news: The EU is implementing a carbon tax on imports like iron and steel, which could significantly impact Ukraine's economy, heavily reliant on these exports to the EU, by 2026
🔭 The context: Ukraine, amidst war with Russia, finds itself more dependent on EU trade, especially for its steel and iron sectors
• The new tax aims to encourage countries to reduce their carbon footprint but places a heavy burden on Ukraine's already war-strained economy
🌍 Why it matters for the planet: The tax reflects the EU's effort to maintain competitive manufacturing while adhering to stringent climate rules, presenting a complex scenario of balancing economic support for Ukraine with environmental goals
⏭️ What's next: Ukraine is racing against time to align with EU standards to avoid the tax's financial blow
• The situation underscores the intricate dance between trade policies, environmental initiatives, and geopolitical realities
💬 One quote: "Ukraine will be caught on its knees,” (Jozsef Csapo, CTO at ArcelorMittal Kryvyi Rih)
📈 One stat: Ukraine stands to lose an estimated $1.4 billion due to the EU's carbon tax on iron and steel imports
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