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The EU has found a way to police carbon emissions beyond its borders

The idea has triggered a hostile reaction from trading partners including Russia and China, and added to tensions over green subsidies with the US.

Ewa Krukowska and John Ainger

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The European Union has a bold plan to make sure its strengthened pollution standards are not undermined by trading partners with weaker ones.

It is introducing a levy known officially as the Carbon Border Adjustment Mechanism (CBAM) to combat so-called carbon leakage, which happens when companies shift production to places with laxer policies to reduce costs.

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    Original URL: https://www.afr.com/link/follow-20180101-p5caef