Is Carbon Tax The Way To Go?

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Not according to incoming European Union trade chief Karel De Gucht. He recently ruled out the French lead initiative to impose a carbon tax at the EU’s borders, worried such ideas could cause trade wars.

“In terms of border adjustments, I am against it” De Gucht told lawmakers. “I don’t see that as the right approach, its one that will lead to a lot of practical problems. We have seen it in the past. The big risk is that it will also lead to an escalating trade war on a global level” he added.

In September the United Nations responded to requests from France and Germany to add their support to add a carbon tax on imports from countries who failed to back international efforts to fight global warming.

The United Nations climate change conference in Copenhagen ended with a non-binding agreement that did not address the issue.

The French government last week decided a new national carbon tax to fight global warming will go into force in July.

“It is clear we need to account in our trade policy what is happening in terms of preserving our environment and climate. But I think we have to take other approaches and find strong polices which are in tune with market laws” said De Gucht.

  • Mark Spowart

    A writer and photographer, Spowart has publication credits in Canada, United States, Europe and Norway with such publications as The Globe & Mail, The National Post, Sun Media, Canwest News, and Canada News Wire.

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