Russia is waiting for an explanation from the EU regarding the carbon border tax, RT reports with reference to the country’s Foreign Minister Sergey Lavrov.
It is noted that in July, the European Commission (EC) published its draft action plan for the world’s first carbon border tax covering the import of goods with a high carbon dioxide footprint, like iron, steel, aluminium, cement, fertilizers, and electricity. The plan is a part of the EU’s agenda for the complete elimination of carbon emissions by 2050.
The Boston Consulting Group (BCG) recently estimated that the new carbon tax could cost Russia nearly $11.7 billion by 2030 and would mostly target Russia’s steel industry. Given this, BCG experts forecast a significant decrease in the volume of exports of certain categories of goods from Russia to the EU.
However, the Ministry of Economic Development of the Russian Federation estimated the cost of the carbon tax for its export sector at $7.6 billion. Besides, recently Russia unveiled its plans to boost the carbon-neutral hydrogen industry, which could help maintain its export positions in the European market in the future.