Europe’s efforts to go climate-neutral by 2050 could be undermined by lack of ambition by our international partners. This would mean a risk of carbon leakage. This occurs when companies transfer production to countries that are less strict about emissions. In such case global emissions would not be reduced.
This new mechanism would counteract this risk by putting a carbon price on imports of certain goods from outside the EU.
Source European Commission
See also EU Green Deal – Revision of the Energy Taxation Directive
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