Headlines
EU considers exempting most companies from carbon border levy
Published by Global Banking and Finance Review
Posted on February 6, 2025
1 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 6, 2025
1 min readLast updated: January 26, 2026
The EU is considering exempting 80% of companies from its carbon border levy, focusing on the 20% responsible for 97% of emissions. This aims to reduce administrative burdens.
By Kate Abnett
BRUSSELS (Reuters) - The European Commission may consider exempting 80% of companies due to be covered by its upcoming carbon border levy, the EU's head of climate policy said on Thursday.
EU Climate Commissioner Wopke Hoekstra said the Commission's analysis had found that nearly all of the emissions covered by the carbon border tariff - 97% - are produced by just 20% of the companies covered by the scheme.
"So would it then not be smart to leave that roughly 80% off the hook, in terms of the administrative work burden? In my view, it would," he told a European Parliament committee meeting.
"Our current thinking, where you actually apply a huge burden on companies who would then fill out a lot of paperwork, have a lot of things to do, without any merit - that cannot be the solution," he added.
The EU's carbon border levy will from 2026 start applying fees at the EU border on the CO2 emissions embedded in imported steel, cement and other products.
(Reporting by Kate Abnett; editing by Barbara Lewis)
The article discusses the EU's consideration to exempt 80% of companies from its upcoming carbon border levy, focusing on major emitters.
The EU aims to reduce the administrative burden on companies, as 97% of emissions come from just 20% of them.
The EU's carbon border levy is set to start in 2026.
Explore more articles in the Headlines category
