Although its exact structure is yet to be agreed upon, the EU is considering imposing a carbon border adjustment mechanism, more commonly referred to as a carbon border tax. According to Klaus-Dieter Borchardt, the European Commission’s Deputy Director General for Energy: “there will be first some areas where we test it, and [the] form is still under discussion, because you can do it in different forms.
We are still struggling in finding a way to such a mechanism in a WTO compatible manner.”