The European Union is set to unveil the world’s first carbon border tax next month.
The goal is to level the playing field with foreign rivals in places with less strict climate rules.
The EU plan has not been overtly rejected by U.S. President Joe Biden. However, Brazil, South Africa, India and China have suggested the tax would be unfair to developing nations.
“I think the Europeans are deadly serious about this,” Tom Rand, the author of the book Climate Capitalism, told Yahoo Finance Canada’s Editor’s Edition. “It’s intrusive. It’s European style, right?”
He said the EU’s willingness to target critical, emissions intensive industries like steel and cement within its own borders is proof of Brussels’ willingness to take a hard stand on climate issues.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.