The EU has approved the world's first carbon tax on imports

After two years of negotiations, the EU’s 27 member states voted on Tuesday (April 25) to finalize a new law creating the world’s first carbon border tax. The tax, levied on imports, is a landmark piece of legislation, with the potential to transform the most polluting industries within the EU and beyond.

The carbon tax is part of a wider overhaul of the bloc’s carbon market that will require European industries to comply with strict emissions standards, making their products more expensive to produce. The tax is intended to ensure that the costlier, lower-carbon EU...