Europe's Green Deal Tariff Plans Worry US, Russia, China
The European Union is talking about including a carbon tax on imports as it comes out of the COVID-19-driven recession, and Russia, the U.S. and China asked about these plans at a World Trade Organization meeting June 8, wondering if such a tariff could be levied within the WTO rules. Russia asked what sectors would be subject to the tax, and why, and asked if the EU is hoping to protect the steel industry under the pretext of fighting climate change.
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Russia said it shares the ambition to achieve climate neutrality with a view of accomplishing sustainable development goals and industrial de-carbonization, adding that these goals should not impede international trade and the flow of goods, a Geneva trade official said.
The EU said that if other countries don't act as strongly as it does to fight climate change, there could be carbon leakage, because buyers could turn to products made with cheaper, dirtier fuels or processes. The European Commission is planning to propose the carbon border adjustment for selected sectors next year.