The European Union has approved a regulation to impose climate sanctions on certain materials imported into the EU territory. Some are essential to the automotive industry. The goal, officially, is to tax the most polluting products and the provision will come into force in October 2023.
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What will it cover? Exactly the basic materials for the production of vehicles: steel, aluminum and iron. In reality, the EU would like less cement, fertilisers, electricity and hydrogen to be imported, which are considered pollutants.
But there are those who wonder if there isn’t another intention behind it, perhaps more protectionist: after all, in recent months, there are those who have implemented similar policies, which in the end have affected the automotive sector. One for all? The United States.
In Europe, this is the thought of the Frenchman Macron, who leans towards protectionism to defend European industry from the imminent Chinese invasion. Now comes the community decision, to reduce carbon dioxide emissions in our area, which is why we talk about climate tariff. In practice, the tax seeks to level the playing field between imported products and those manufactured in the European Union.
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The new regulation is part of the Carbon Border Adjustment Mechanism, operational as mentioned in October 2023 even if, initially, companies that import polluting materials will only have to declare the emissions. What will be the consequences for the automotive sector? If the imported raw materials used to make the products will be more expensive, the final price will inevitably increase.
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All this takes place against the backdrop of the scenario towards electric: Europe wants 30 million battery-powered cars on the road in 2030, while the automotive industry does not see it feasible. Now another decision is about to take the stage that will disturb the already precarious balance.