The European Commission recently put forward a package of environmental protection proposals, including the establishment of the EU "carbon border adjustment mechanism." According to this mechanism, the EU will impose taxes on commodities such as steel, cement, aluminum and fertilizers imported from countries and regions with relatively loose carbon emission restrictions. Experts pointed out that the proposal will have an impact on global trade. At present, the outside world generally has doubts about whether the EU's move is in line with the current trade rules. There are also large differences among EU member states on the imposition of "carbon tariffs."

The European Commission’s package of proposals for addressing climate change aims to reduce the EU’s net greenhouse gas emissions by at least 55% by 2030 from 1990 levels. The proposal is part of the "European Green Agreement", and the overall goal is to make the EU carbon neutral by 2050. According to the “carbon border adjustment mechanism”, the EU will impose “carbon tariffs” on commodities such as steel, cement, aluminum, and fertilizers imported from countries and regions with relatively loose carbon emission restrictions. The British "Financial Times" reported that the mechanism expands carbon pricing to more carbon-intensive industries and activities, including aviation, shipping and construction, by expanding the carbon emissions trading system and introducing "carbon tariffs."

Wang Sidan, a lecturer at the Institute of International Relations of the China Foreign Affairs University, said in an interview with this newspaper that one of the key elements of the EU’s “carbon border adjustment mechanism” is the “carbon tariff”, and the adjustment of tariffs will have a direct impact on trade. The EU's proposal to amend the "rules of the game" this time will inevitably arouse great attention from trading partner countries and local industries. At present, while promoting industrial transformation, the EU imports carbon-intensive products from developing countries. Although these products do not generate carbon emissions within the EU, they still generate carbon emissions in other countries.

The EU's "carbon tariff" is regarded as one of its measures to ease the huge debt pressure. The British "Financial Times" quoted the EU's forthcoming "carbon border adjustment mechanism" legal text and reported that if this mechanism can be fully launched and operated before 2030, it is estimated that 9 billion euros of "carbon tariff" revenue can be obtained each year. The income will be used to support the European Union’s 750 billion euro recovery fund to help EU member states recover their economies after the epidemic.

According to the US "Time" report, the EU announced the detailed plan this time and is determined to put it into action, indicating that EU leaders hope that the world will realize that the EU will lead the world to a low-carbon future. The British "Financial Times" reported that if Europe succeeds in this initiative, other countries may follow its ambitious leadership. At the same time, in a greener world, European industry will gain first-mover advantage.

Wang Sidan pointed out that from a political perspective, the "carbon border adjustment mechanism" is one of the important measures taken by the European Union to achieve its global climate leadership. This mechanism is not aimed at within the EU, but levies taxes on products from other countries that enter the EU market. Therefore, the EU's proposal is intended to increase its global influence.

Can the "carbon tariff" proposal come true? It is still unknown. According to the "EU Observer" website, Australia condemned the EU's plan to impose taxes on exporters of carbon dioxide-intensive products such as steel in order to create a level playing field for EU companies subject to emission regulations. The Australian Trade Minister pointed out that the last thing the world needs now is to implement additional protectionist policies. Russia said that the EU’s “carbon tariffs” would hit 6.4 billion euros worth of Russian products, including iron ore, steel, aluminum and pipelines.

In addition, there are also big differences within the EU on the imposition of carbon tariffs. "Russia Today" website reported that the EU's new climate plan will lead to unemployment and large-scale protests, and may even bring down the EU itself. According to the British "Financial Times" report, the European Union's historic attempt to tackle climate change is facing opposition from the governments of the European Union because the plan will make households in various countries face higher energy costs.

Keywords: new energy, overseas engineering, international engineering construction, foreign engineering construction news

Wang Sidan pointed out that the EU’s rules need to comply with WTO standards, but the WTO’s goal is to eliminate tariffs and trade barriers. Therefore, how the EU’s proposal will be connected to the WTO is still in doubt. He also said that in the context of the "European Green Agreement", the EU will continue to advance the pace of the "carbon border adjustment mechanism" in the future, but the implementation process will not be smooth sailing. Editor/XuNing