EU carbon tax – level 2

07-01-2026 07:00

From January 2026, companies that bring steel, aluminium, and cement into the EU must pay for the carbon these goods create.

The EU says this rule protects European companies and keeps competition fair. European companies must buy special certificates with the carbon level of the goods.

Many countries disagree with the new rule. The United States, China, India, Russia, and South Africa say it hurts trade and is good only for the EU. Some countries fear more trade problems, especially after the US raised tariffs on EU products.

The EU says the tax supports cleaner production and stops companies from moving to countries with weaker climate rules. The EU also plans to use some of the money from the tax to help its own industries deal with higher costs.

Difficult words: cement (a gray powder to make walls, roads, and other structures), competition (when people or companies try to do better than others), tariff (a tax on things from other countries).

You can watch the original video in the Level 3 section.

How does the EU justify its carbon certificate requirement for imported steel, aluminium, and cement?

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