Reuters: EU prepares measures to prevent carbon tax evasion

This year, the European Commission will propose measures to prevent the circumvention of the carbon tax that will be applied to imported goods. About writes Reuters citing a European Commission spokesperson.

In January 2026, the EU's Carbon Border Adjustment Mechanism, the world's first carbon tax, will come into force.

It provides for the collection of fees for CO2 emissions from imported goods, including steel, aluminum, cement, and fertilizers.

The European Commission fears that some countries, including China, will come up with schemes to circumvent the CBAM: they will supply "low-carbon" goods to the EU while continuing to produce "high-carbon" products for other markets. This will allow them to avoid the tax without changing the actual level of emissions.

By the end of the year, the European Commission plans to propose measures to address this issue. In particular, it is considering setting a fixed estimate of CO2 emissions for each country or company, instead of calculating emissions for each batch of goods.

Last month, the European Aluminium industry group proposed a simplified system where all aluminum imports from one country would receive the same CO2 emissions assessment, regardless of actual emissions during production.

• In February, the European Commission proposed to dismiss the vast majority of companies from paying the CBAM, as they are responsible for only 1% of emissions under this initiative.
• On July 4, it became known that the European Commission ready to postpone the carbon tax for Ukraine, if there is an official request.