imported products which generate greenhouse gas emissions but do not face a cost for it at home. In other words, businesses based in EU member states that import the goods would pay a price that is calculated based on what they would have paid if they were produced under the bloc’s own emissions trading scheme.
This is problematic even for countries which have taken critical steps to maximise global climate efforts, because although their own businesses which drive emissions may face costs, they do not want their goods to be unfairly disadvantaged against foreign competitors. Criticising the proposal before and after the details were released, Australia’s trade minister Dan Tehan claimed the move was “just a new form of protectionism”, and added that it would hit a significant number of jobs.
However, Brussels has pledged that the system would ensure fair treatment for all by complying with the rules of the World Trade Organisation (WTO). This means that although the scheme appears to be aimed at countries heavily reliant on emissions-intensive industries, the mechanisms need to be applied equally for it to stand under the WTO.
In the details released on Wednesday, the EU executives noted…
