EU Mulls Expansion of Sectors Targeted by Carbon Border Tax

The European Union is considering extending the purview of its carbon border tax to a limited number of other sectors, according to a European Commission official.

In an opinion piece published Monday on the EU executive’s website, Gerassimos Thomas, director-general for the EU’s Taxation and Customs Union, said the bloc is looking at “possibly extending the scope” of the carbon border adjustment mechanism “to a limited number of additional sectors at risk of carbon leakage.”

The CBAM is a tax on carbon-intensive goods such as fertilizers, cement, iron, steel, and aluminum imported into the EU. It’s meant to encourage ...