The European Union's (EU) carbon border tax, set to be implemented in 2026, will not apply to freight transported via a green corridor, Taleh Ziyadov, Director General of the Baku International Sea Trade Port CJSC, told Report.
Ziyadov explained that the carbon tax will be determined based on the cleanliness of the supply chain: “EU will consider the route taken by the goods and whether it harms the environment. Meeting these requirements is a lengthy process, and countries must first green their supply chains from China to Europe. Moreover, the participation of all countries along the corridor is necessary.”
The director general further stated that the Baku International Sea Trade Port has been closely cooperating with the European Union on green projects since 2016, with the goal of greening the Middle Corridor. In 2019, the port became the first in the Caspian region to receive the green port status.
Ziyadov expressed the desire for other ports and vehicles along the Middle Corridor to also become green.
The Baku Port, for the first time in the region, was awarded the green port certificate by the European Sea Ports Organization (ESPO) and aims to achieve zero emissions by 2035.
EU member states have agreed to impose a carbon border tax on certain products imported from third countries, such as cement, aluminum, fertilizer, electricity, iron, and steel. These rules will not apply to goods valued below 150 euros.
Currently, Azerbaijan does not have specific carbon emission taxes or an emission trading system. However, the absence of a carbon border tax does not exempt investors or entrepreneurs from tax obligations. To adapt to the rules of the world trade system, voluntary adoption of technologies that reduce carbon emissions should be initiated.