By Paul Homewood

It is becoming ever more evident that much of Europe’s heavy industry is unlikely to survive the EU’s unilateral Net Zero policy.

The EU’s carbon price reached a new record high of 45 euros ($54) a tonne on Tuesday.

As the carbon price is expected to increase much further in the next few years, European industrial groups are desperately calling for the introduction of a carbon border tax, hoping that it will save them from international competitors that are able to produce much cheaper.

Even higher carbon prices are coming. BloombergNEF expects carbon prices to hit 100 euros by 2030.

They warn that rising energy and carbon costs will force energy-intensive manufacturing to shut down and relocate to countries with less stringent CO2 targets if the EU does not introduce protectionist carbon protection.

It is rather doubtful, however, whether the EU can afford to introduce a carbon border tax, knowing full well that China, India and much of the rest of the emerging and developing world would simply retaliate in return, threatening to tax European products out of Asian and African markets altogether.

European and American politicians should be reminded that we have been warning for years about this inevitable outcome of unilateral climate policies.

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May 1, 2021