<p>I think the answer is generally/overwhelmingly "no" there usually not a embedded carbon (import) tax in most jurisdictions. A <a href="https://www.cer.eu/insights/should-eu-tax-imported-co2" rel="nofollow noreferrer">2019 paper</a> says:</p>

<blockquote>
  <p>The idea of a BCA is not new. In the US, for example, lawmakers have tabled several proposals to introduce a carbon tax. So far, though, no country in the world has an operational BCA. </p>
</blockquote>

<p>Supposedly the EU Green Deal was <a href="https://www.reuters.com/article/us-climate-change-eu-carbontax-explainer/explainer-what-an-eu-carbon-border-tax-might-look-like-and-who-would-be-hit-idUSKBN1YE1C4" rel="nofollow noreferrer">supposed</a> to include one, but I haven't followed the developments. (There have been arguments against it <a href="https://www.bruegel.org/wp-content/uploads/2020/03/PC-05-2020-050320v2.pdf" rel="nofollow noreferrer">already</a>. And the US has already <a href="https://www.ft.com/content/f7ee830c-3ee6-11ea-a01a-bae547046735" rel="nofollow noreferrer">threatened to retaliate</a> should the EU adopt it.)</p>

CC BY-SA 4.0
2020-06-08T21:02:08.497Z
Thank you. (For other readers: BCA = border carbon adjustment)
sba222
CC BY-SA 4.0
2020-05-08T17:17:00.553Z
2020-05-08T17:17:00.553Z
fantastic peace and prosperity
<p>I’m giving the example of Sweden whose carbon tax is highly regarded and which is the highest in Europe. 
<a href="https://taxfoundation.org/carbon-taxes-in-europe-2019/" rel="nofollow noreferrer">Source</a></p>

<p>Sweden has a carbon tax of €110 / t. <a href="https://www.government.se/government-policy/taxes-and-tariffs/swedens-carbon-tax/" rel="nofollow noreferrer">Source</a></p>

<p>This tax does not apply to installations covered by the EU ETS. The EU ETS applies to 45% of all carbon emitted in the EU and currently only prices carbon at around €25 / t. 
<a href="https://ec.europa.eu/clima/policies/ets_en" rel="nofollow noreferrer">Source1</a> <a href="https://markets.businessinsider.com/commodities/co2-european-emission-allowances" rel="nofollow noreferrer">Source2</a></p>

<p>Moreover some 45% of primary energy consumed in Sweden is nuclear and hydro making Sweden’s energy supply relatively less dependent on carbon emissions. 
<a href="https://www.iea.org/countries/sweden" rel="nofollow noreferrer">Source</a></p>

<p>As a consequence of the carbon tax and the high share of non-fossil energy generation Sweden’s per capita carbon emissions are low by international standards (5.5 t CO2e / capita / year). 
<a href="https://ec.europa.eu/eurostat/web/products-datasets/-/T2020_RD300" rel="nofollow noreferrer">Source</a></p>

<p>However, when measured by consumption Sweden’s per capita emissions are relatively high (15.4 t CO2e / capita / year). 58% of carbon consumed in Sweden is imported. 
<a href="http://www.diva-portal.org/smash/record.jsf?pid=diva2%3A651167&amp;dswid=7305" rel="nofollow noreferrer">Source</a></p>

<p>This makes me think that there could be tendency for expensive domestic carbon emissions, especially those not covered by the cheaper EU ETS, to be substituted with carbon embedded in imports – unless the carbon tax would apply to imports as well.</p>

<taxation><environmental-economics><pigouvian-taxes>
Do carbon taxes in place today apply to carbon embedded in imports?
sba222
# Do carbon taxes in place today apply to carbon embedded in imports?

(Asked by: username_0 on 2020-05-08)

I’m giving the example of Sweden whose carbon tax is highly regarded and which is the highest in Europe.
[Source](https://taxfoundation.org/carbon-taxes-in-europe-2019/)

Sweden has a carbon tax of €110 / t. [Source](https://www.government.se/government-policy/taxes-and-tariffs/swedens-carbon-tax/)

This tax does not apply to installations covered by the EU ETS. The EU ETS applies to 45% of all carbon emitted in the EU and currently only prices carbon at around €25 / t.
[Source1](https://ec.europa.eu/clima/policies/ets_en) [Source2](https://markets.businessinsider.com/commodities/co2-european-emission-allowances)

Moreover some 45% of primary energy consumed in Sweden is nuclear and hydro making Sweden’s energy supply relatively less dependent on carbon emissions.
[Source](https://www.iea.org/countries/sweden)

As a consequence of the carbon tax and the high share of non-fossil energy generation Sweden’s per capita carbon emissions are low by international standards (5.5 t CO2e / capita / year).
[Source](https://ec.europa.eu/eurostat/web/products-datasets/-/T2020_RD300)

However, when measured by consumption Sweden’s per capita emissions are relatively high (15.4 t CO2e / capita / year). 58% of carbon consumed in Sweden is imported.
[Source](http://www.diva-portal.org/smash/record.jsf?pid=diva2%3A651167&dswid=7305)

This makes me think that there could be tendency for expensive domestic carbon emissions, especially those not covered by the cheaper EU ETS, to be substituted with carbon embedded in imports – unless the carbon tax would apply to imports as well.

**Tags:** taxation, environmental-economics, pigouvian-taxes


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## 1 answers

### Answer by username_1 on 2020-05-08. Score: 1 | Accepted answer

I think the answer is generally/overwhelmingly "no" there usually not a embedded carbon (import) tax in most jurisdictions. A [2019 paper](https://www.cer.eu/insights/should-eu-tax-imported-co2) says:

> The idea of a BCA is not new. In the US, for example, lawmakers have tabled several proposals to introduce a carbon tax. So far, though, no country in the world has an operational BCA.

Supposedly the EU Green Deal was [supposed](https://www.reuters.com/article/us-climate-change-eu-carbontax-explainer/explainer-what-an-eu-carbon-border-tax-might-look-like-and-who-would-be-hit-idUSKBN1YE1C4) to include one, but I haven't followed the developments. (There have been arguments against it [already](https://www.bruegel.org/wp-content/uploads/2020/03/PC-05-2020-050320v2.pdf). And the US has already [threatened to retaliate](https://www.ft.com/content/f7ee830c-3ee6-11ea-a01a-bae547046735) should the EU adopt it.)

> **Comments:**
> **username_0**: Thank you. (For other readers: BCA = border carbon adjustment)  

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