EU considers carbon tariff

Fri Jan 4, 2008 4:01pm GMT
 
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By Gerard Wynn

LONDON (Reuters) - The European Commission is debating whether to push for a carbon tariff on imports from countries that do not tackle their greenhouse gas emissions, as part of climate change proposals due out this month.

Supporters of the measure say it would level the playing field for European companies facing tougher domestic emissions penalties. The new rules would be part of a raft of post-2012 proposals covering issues including national emissions targets and clean energy subsidies.

Unlike the European Union, neither China, India nor the United States have yet agreed to binding emissions reductions.

The idea of imposing some kind of tariff on goods imported from countries with less strict controls on greenhouse gases was first put forward by former French President Jacques Chirac.

But the plan has run into opposition from European Trade Commissioner Peter Mandelson who has said it would be hard to implement and could lead to trade disputes.

A preliminary draft, seen by Reuters, says companies importing goods into the 27-nation European Union from countries that do not similarly restrict greenhouse gas emissions would have to buy EU emissions permits.

A Commission official confirmed that the carbon charge issue was still under consideration, despite opposition.

"It's very much debated," the official said. "It's not solved yet."  Continued...

 
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