According to European Commission's estimates, the carbon border tax has a potential of bringing EUR 5–14 billion to the EU budget annually
In the summer of 2021, the European Commission will present a new bill on the introduction of the so-called carbon border tax. The tax is introduced as part of the Green Deal.
According to European Commission's estimates, the carbon border tax has a potential of bringing EUR 5-14 billion to the EU's coffers annually.
Such a wide variation in the revenue expectations is not accidental. The EU has not yet resolved how they will determine "carbon intensity" of imported products. The calculations are projected to be based on the existing system of benchmarks for CO2 emissions generated by industrial processes within the EU. To date, this system has been in use for about 10 years within the EU ETS, where the credits for greenhouse gas emissions are bought and sold. This reference value will apply unless the exporter confirms a lower carbon content in their industrial emissions.