Australia may impose carbon tariffs on steel and cement imports from countries with lower climate goals

A steelworker in Germany. Australia’s climate change and energy minister, Chris Bowen, said his department would consult on whether Australia should impose tariffs on imports produced with high carbon dioxide emissions. Photograph: Ina Fassbender/AFP/Getty Images

The federal government is considering whether Australia should follow the European Union and impose tariffs on some imports from nations with less ambitious climate goals.

The climate change and energy minister, Chris Bowen, said his department would begin two rounds of consultation on whether Australia should adopt a so-called cross-border adjustment mechanism (CBAM) to avoid disadvantaging domestic companies. Steel and cement would be the first two products to be considered.