Ursula von der Leyen has warned China and other large fossil fuel producers to find a way to price carbon at home or risk being hit by the EU with a planned CO2 tax on imports.
Speaking at the World Economic Forum in Davos on Wednesday, the president of the European Commission laid out Brussels’ plan to set up a carbon border adjustment mechanism that would hit importers from countries that do not respect international climate goals.
The initiative is a central part of the commission’s European Green Deal and is designed to protect European businesses — which are being asked to reduce their CO2 footprint — from “carbon dumping” outside the continent.
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