European Nations Wary on Environmental ProtectionismEuropean nations are wary about a perceived trend in France and the
United States to use international competition as a reason to back off on
Carbon reduction pledges. They are concerned that carbon tariffs could be
used to fend off competition from countries which have not committed to
reducing emissions, in effect triggering a green trade war. The EU is dealing with the competitiveness issue differently. It is granting free emissions "permits" to industries which might be tempted to relocate to areas with less stringent regulations, an effect dubbed 'carbon leakage'. In a measure opposed by President Obama, the US House of Representatives inserted a provision in its draft climate bill that allows the US to impose a 'border adjustment' after 2020 on certain products from countries which do not limit their global warming emissions. The move was seen as a pre-emptive measure to tackle American firms' loss of competitiveness in the face of cheaper products flooding from countries without a carbon premium. Obama has said: "At a time when the economy worldwide is still deep in recession and we've seen a significant drop in global trade, I think we have to be very careful about sending any protectionist signals". Rajendra Pachauri, chair of the UN's Intergovernmental Panel on Climate Change (IPCC), also criticised the draft legislation, warning that it would allow developing countries to tax US exports in return. Based on reporting from EurAcitve.com: http://www.euractiv.com/en/climate-change/carbon-tariffs-falling-favour-trade-war-looms/article-184449?Ref=RSS 2009. Copyright Environmental News Network To subscribe or visit go to: http://www.enn.com |