A new front is opening up in the fight against climate change: taxing the carbon content of imported goods. On July 14, the European Union will unveil its draft scheme to target imported steel, aluminium, cement, fertiliser and other greenhouse gas-intensive goods produced in countries with weaker climate policies.

The EU says it is necessary to protect its industries, which face high carbon costs and progressively tougher climate regulations at home, against cheaper imports from nations with no or weak emissions regulations.