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January 13, 2010 / Mridul

EU Trade Chief Speaks Against Carbon Tax

“In terms of border adjustments, I’m against it,” De Gucht told lawmakers in response to a question during a European parliamentary confirmation hearing in Brussels.

“I don’t see that as the right approach — it’s one that will lead to lots of practical problems.

“We’ve seen it in the past. The big risk is that it will also lead to an escalating trade war on a global level.

Although the concerns voiced by Mr. De Gucht are legitimate he failed to propose alternative for carbon tax. Just as we have seen trade wars and diplomatic storms over trade taxes, we have also seen the failure of carbon offsetting mechanisms which have now actually become a business rather than a tool for mitigating impacts of carbon emissions.

Clean Development Mechanism and other region and international mechanisms like it are complicated and their effectiveness to prevent industries from emitting carbon dioxide has been widely questioned. Carbon tax, on the other hand, seems fairly simple in approach. A former high ranking official at Shell once said that if we want to check the carbon emissions growth we need to put a price on the carbon dioxide.

There were concerns over trade issues when the United States talked of an international carbon tax however, carbon tax seems to be the simplest possible tool to make the industry reduce its carbon emissions worldwide.

Posted via web from Random Views

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