The European Parliament will vote this month on a carbon tax which will apply to a wide range of imports from Australia.
The European Union last week voted in favour of a carbon border adjustment mechanism, which would place a carbon price on imports from less climate-ambitious countries. It will be introduced by 2023.
Australian farmers are warning that agricultural exports will be hardest hit without decisive action by the federal government on climate change.
Farmers for Climate Action chair Charlie Prell, said the entire industry has been put on notice.
“The US is also considering similar measures and it would be naive to think that the rest of the world, including some of Australia’s biggest trading partners, will not follow suit,” he said.
Queensland grazier and Farmers for Climate Action board member Angus Emmott said Australia needs to commit to a net zero target.
“Our representatives in parliament need to get real about how rapidly the world is changing and work to position Australia so we can best take advantage of the opportunities these changes represent,” he said.
China and Japan have committed to a net zero target and are working to introduce similar measures.
The Japanese government has confirmed it is considering a carbon pricing scheme which would force companies to pay a price for their greenhouse gas emissions.
United States president, Joe Biden, also supports a similar “carbon adjustment fee against countries that are failing to meet their climate and environmental obligations” at the US border.