The European Union published its Sustainable Finance Framework to achieve the climate goal. A key proposal that has garnered global attention is the commission’s push for the world’s first carbon border tax on imported goods.
To put into perspective, at present most industries in the European Union (EU) are kept under a program that would charge polluters for their emissions and this is known as the emissions trading system.
This program sets a cap on overall emissions. What large polluters do is that they mostly procure permits for every tonne of carbon dioxide they emit. Currently, the price of those permits is nearly $60 per tonne. This arrangement pushes the European companies to cut emissions.
For more details on this, watch the accompanying video of CNBC-TV18’s Sonal Bhutra in our series ‘Sustainable Future’