Call for EU carbon tariffs on imports from defaulters

THE EUROPEAN Commission should immediately bring forward proposals for “carbon tariffs” on goods imported from countries such…

THE EUROPEAN Commission should immediately bring forward proposals for “carbon tariffs” on goods imported from countries such as China or India that are failing to take strong action on climate change, according to a new analysis published yesterday.

The analysis by Joseph Curtin, climate and energy specialist with the Dublin-based Institute for International and European Affairs (IIEA), looks at how the EU should respond to the outcome of last month’s UN climate change summit in Copenhagen.

The extent to which the EU was marginalised in its final hours had been shown by the fact that European Commission president José Manuel Barroso had found out about the deal done by the US, China and others “by way of a text message on his phone”.

Although the Copenhagen accord fell far short of the EU’s ambitions, Mr Curtin says it “remains unspecific enough for the EU to promote its agenda” in negotiations leading to the UN’s 16th climate change conference in Mexico City next December.

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“In order for this to happen, decisive action will be required,” the IIEA analysis says. “The EU will need to think strategically and tactically, with a cognisance of the realities in which it is operating” – specifically, the emergence of a “new world order” led by the US and China.

“Although the EU’s power in this new world order will be diminished, it still has many instruments at its disposal”, it says, adding that these should include proposals for carbon tariffs of up to 9 per cent on imports, as favoured by French President Nicolas Sarkozy.

The analysis argues that this would be compatible with the World Trade Organisation’s rules.

It also calls on the EU to present a more coherent front at climate negotiations, noting that the new European climate action commissioner, former Danish minister Connie Hedegaard, had said others such as the US and China “each spoke with one voice”.

The IIEA analysis suggests that it would be unwise for the EU to go beyond its pledge to cut greenhouse gas emissions by 20 per cent by 2020.

“The first lesson from Copenhagen is that putting all your cards on the table to offer ‘leadership’ can lead to unintended outcomes.”

In Brussels yesterday, the EU decided to stick to its lower offer of a 20 per cent cut in emissions while maintaining its pledge to do more if others follow suit. Under the Copenhagen accord, all such pledges by developed and developing countries must be filed by January 31st.