Key facts
- EU governments have reached a consensus on introducing new levies on foreign carbon imports and electronic waste.
- These levies are intended to help finance the bloc's next seven-year budget.
- The Carbon Border Adjustment Mechanism (CBAM) is expected to generate significant revenue for the EU budget.
- A separate levy on non-collected electronic waste also garnered broad support.
- Opposition remains from some member states regarding levies on emissions trading scheme (ETS) revenues and corporate profits.
EU governments have reached a consensus on introducing new levies on foreign carbon imports and electronic waste to help finance the bloc's next seven-year budget. The Irish Council presidency, which is steering discussions, noted broad support among member states for these measures, crucial for securing a budget agreement by year-end.
The Carbon Border Adjustment Mechanism (CBAM) is expected to generate an average of €1.644 billion per year for the EU budget, with a total of €11.5 billion anticipated for the entire budget cycle. A separate levy on non-collected electronic waste is projected to bring in €17.9 billion annually. These 'own resources' are seen as essential for increasing EU revenue and reducing national contributions from 2028 to 2034.
However, significant opposition remains from some member states, particularly regarding levies on emissions trading scheme (ETS) revenues and corporate profits, which are seen as undermining competitiveness. Proposals for taxes on online gambling, crypto firms, and digital giants, put forward by the European Parliament, also faced widespread opposition due to implementation concerns and potential geopolitical repercussions, especially from the U.S.
Discussions are also ongoing regarding the potential postponement of repayments for the bloc's post-Covid recovery fund, which is expected to cost €25 billion per year. The European Council president, António Costa, has urged national leaders to focus on these potential taxes during their upcoming gathering.