EU to reduce carbon border levy coverage to just 10% of firms

Published 27/05/2025, 12:22
EU to reduce carbon border levy coverage to just 10% of firms

Investing.com -- The European Union (EU) countries have given their support to proposals aimed at reducing the coverage of the bloc’s carbon border levy. As of Tuesday, the plan is to limit the levy to only 10% of the companies that are currently included in the scheme. This decision is based on the fact that these firms are responsible for nearly all the emissions involved.

The approval by EU countries makes it very probable that the EU will provide exemptions for the majority of the 200,000 importers who were expected to be subjected to the world’s first carbon border tariff, starting from the next year.

The final changes to the carbon border levy must be negotiated with the European Parliament. Last week, the parliament expressed its support for the proposed changes. On Tuesday, ministers from EU countries gave their approval to the proposed changes during a meeting in Brussels. This suggests that the reduced coverage of the carbon border levy is likely to be implemented as planned.

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