‘Jury is still out’ on EU’s carbon border tax, Hogan says

(EurActiv, 20 Jan 2020) The European Commission will not reveal its approach on the EU’s proposed carbon border tax until late 2020 or early 2021, when it concludes a detailed feasibility analysis, Phil Hogan, the EU’s trade commissioner, said on Monday (20 January).

“I’m not going to come to conclusions,” Hogan said of the proposed tax, indicating that the Commission was still in the process of conducting an impact assessment on how it could be implemented.

The public consultation has only started and the Commission is now collecting contributions from interested parties, Hogan told a Brussels conference organised on Monday by BusinessEurope, the EU employer’s organisation.

“I expect it will be 2021 or later this year before we see a paper or some conclusions coming of this process. So it’s a bit early to say how it will work. But at least it’s on the agenda,” he said in response to a question from EURACTIV about progress made with the proposed tax.

“The jury is still out,” Hogan concluded, saying the Commission’s stance will depend on the outcome of that analysis.

European Commission President Ursula von der Leyen has outlined a carbon border tax as “a key tool” to “ensure that EU companies can compete on a level playing field” with countries like China, which don’t regulate CO2 emissions from industry.

The EU will “have to debate the option of a carbon border tax” von der Leyen said, insisting a levy has to be introduced in order to protect EU industries against climate and environmental dumping.

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EurActiv, 20 Jan 2020: ‘Jury is still out’ on EU’s carbon border tax, Hogan says