Spyke

Syndicated from the fediverse. Read and engage on the original instance.

View original on lemmy.world

4 replies

theinspectorst
kbin.social

This is a great example of the stupidity of Brexit in an integrated world. Rishi Sunak has allowed the market for carbon credits in the UK to collapse post-Brexit, meaning the price of carbon in the UK now undercuts that in the EU. That means British exporters to the continent will now have to pay carbon taxes into the EU's coffers, when previously they would have been using that money to buy carbon credits from the UK taxpayer. Thus the Tories spend our so-called 'sovereignty'...

4
nbafantestreply
lemmy.world

when previously they would have been using that money to buy carbon credits from the UK taxpayer.

Can you explain this? Wouldnt the exporters still have to pay the carbon tax?

2
theinspectorstreply
kbin.social

My understanding was that the carbon tax applies to exporters from jurisdictions where carbon pricing undercuts the EU emissions market. So by oversupplying emissions credits in the UK post-Brexit (and thus letting the price per tonne drop to around half of the EU price), Sunak has brought UK exporters in-scope of the tax.

2
MrHandyManreply
lemmy.world

You are correct. This is from the CBAM Q&A document:

Conversely, if a non-EU producer has already paid a carbon price in a third country on the embedded emissions for the production of the imported goods, the corresponding cost can be fully deducted from the CBAM obligation.

2

You reached the end

The EU Just Kicked Off Its Biggest Climate Experiment Yet | Spyke