Market Closed

22 Sep 2021 18:28:34

Potential carbon border tax for NZ exports

Posted: 20 Jul 2021

Milk, meat and metal exports could one day be stung with border tariffs, if the country falls behind international efforts to cut carbon.

Last week, lawmakers in the EU and US announced proposals to put levies on foreign goods that aren’t subject to carbon pricing in their home countries.  The EU wants to begin with industrial emissions, aiming the tariff at aluminium, cement, chemicals, iron, refined oil and steel – plus imported electricity.  In the US, iron and steel are likely targets, although the US concept is at a much earlier stage.

In cases where New Zealand’s rules are softer, both domestic obligations and the carbon border tariffs could apply, said climate campaigner Paul Winton​.

“Those countries are probably going to look through whatever mechanism we’ve got and decide whether there is a need for more pressure to be applied to different sectors or the country,” he added.  Read more here