EU's carbon trade revision threatens import tax

Draft proposals to reform the EU's carbon emission trading scheme (ETS) include an import tax on products from any country that does not sign up to "binding and verifiable action" to reduce greenhouse gas emissions, ENDS has learned.

A draft European commission directive text circulated this month (see link below) confirms several elements of reform that have been suggested since very early on the ETS review: longer trading periods, central allocation of carbon allowances and a presumption of more allowance auctioning.