The European automotive industry is currently facing stiff competition from cheap cars from third countries, especially China. However, the price advantage is often achieved not only through low labor costs but also by polluting production that uses steel and aluminum smelted in coal furnaces, writes nra.lv, citing tv3.lt.
In order to protect its market and stimulate cleaner production worldwide, the European Union is preparing a new mechanism by 2026 — a carbon border adjustment mechanism, or, simply put, a "carbon tax."
It turns out that every new car starts its journey with a significant "carbon debt" — for example, the production of just one kilogram of aluminum using coal can emit up to 16 kilograms of CO₂ into the atmosphere.
This new EU tax targets the initial production chain: starting in 2026, importers will be required to declare how much CO₂ was emitted during the production of imported metal.
If emissions exceed EU standards, there will be a fee for the excess. This is aimed at creating equal competitive conditions with European manufacturers, who are already investing billions in "green" steel production — using hydrogen or renewable energy.
There is no doubt that this decision will affect consumers: the European Commission acknowledges that final prices for products, including cars, will rise.
It is estimated that the cost of a car priced at 25,000 euros could increase by several hundred euros. This will particularly impact inexpensive Chinese electric vehicles, where cheap steel has still been a significant advantage in price formation.
