In the summer of 2021, the European Commission will present a new bill on the introduction of the so-called carbon border tax. The tax is introduced as part of the Green Deal.

According to European Commission's estimates, the carbon border tax has a potential of bringing EUR 5-14 billion to the EU's coffers annually.

Such a wide variation in the revenue expectations is not accidental. The EU has not yet resolved how they will determine "carbon intensity" of imported products. The calculations are projected to be based on the existing system of benchmarks for CO₂ emissions generated by industrial processes within the EU. This system has been in use for about 10 years now within the EU ETS, where greenhouse gas emission credits are bought and sold (hyperlink to the screen displaying carbon credits). This reference value will apply unless the exporter confirms a lower carbon content in their industrial emissions.