It would target carbon-intensive imports including steel, aluminium, cement, fertilizers and electricity. If approved, it will be phased in starting in 2026. (The Logic)

Talking point: The border levy is part of a package of proposals meant to help the EU reduce its carbon emissions by at least 55 per cent from 1990 levels by 2030. Other measures include reducing the cap on carbon emissions over time and setting targets to generate 40 per cent of energy from renewable sources by 2030. This week, China is also expected to launch its own emissions-trading program, which would be the world’s largest. The EU border tax in particular aims to help the region’s industries stay competitive with foreign manufacturers that may not face as stringent emissions rules at home. While leaked documents show that Canada is not exempt from the regulations, a fact sheet outlining the proposed policy notes that imports that were subject to carbon pricing in another country can face lower levies.