The European Union will levy taxes on some imported cement and other products.

Council of the European Union recently reached an agreement on the rules of the Carbon Border Adjustment Mechanism (CBAM). According to this mechanism, the EU will levy taxes on cement, aluminium, fertilizer, steel and other products imported from countries and regions with relatively loose carbon emission restrictions. The

carbon boundary adjustment mechanism is the core issue of the meeting of economic and financial ministers of EU member States held on March 15. The mechanism is the core of a package of environmental proposals put forward by the European Commission in July last year. It is mainly aimed at products imported into the European Union that are not produced in accordance with strict carbon dioxide emission standards. The purpose of this tax is to balance the cost of carbon dioxide emissions for manufacturers. Manufacturers will also have to pay a fee to comply with strict carbon emission standards when they manufacture products in the EU. Bruno Le Maire, Minister of Economy and Finance of France, which holds the rotating presidency of the

European Union, said that this mechanism will play the following roles: on the one hand, it will provide a tool to accelerate the decarbonization of relevant industries in the European Union; on the other hand, it will encourage other countries to develop more sustainably and reduce carbon emissions; In addition, this mechanism is also a response to the strategy of accelerating European energy independence. The Council of the European Union also plans to set a minimum threshold to exempt products with a value of less than 150 euros from carbon border adjustment mechanism obligations. This measure will reduce administrative complexity, as about one third of goods destined for the EU fall into this category. It is reported that the carbon boundary adjustment mechanism will run in parallel with the EU's carbon emissions trading system and supplement or replace its specific provisions. On January 15,

2020, the European Union adopted the European Green Agreement, which promises to reduce greenhouse gas emissions by 50% -55% in 2030 compared with 1990 and achieve carbon neutrality by 2050. In July 2021, the European Commission launched a carbon tariff proposal: a carbon boundary adjustment mechanism to implement the EU's climate goals.