Australia considers carbon tariffs on imported cement and steel

The Australian government is considering the introduction of carbon tariffs on cement and steel imports from countries with lower climate goals. According to The Guardian, Australia’s climate change and energy minister, Chris Bowen, has confirmed that two rounds of consultation will now be held to discuss whether Australia should adopt a cross-border adjustment mechanism (CBAM), similar to the EU.

“We know of the potential for production to shift from countries with more ambitious emissions-reduction policies to those with lower emission-reduction policies, and potentially resulting in increased global emissions,” said Mr Bowen. “[This] undermines national and international climate action and has long been a key consideration in the development of climate policy across the world.”

A final report on what action Australia will take is expected by the third quarter of 2024.