issuing major warnings over the global climate crisis, with the United Nations’ Intergovernmental Panel on Climate Change issuing the most recent alert on Monday, that climate changes caused by human activity is nearly spiralling out of control, causing damages which may be irreversible. Accordingly, countries across the globe accelerating their efforts to minimise the greenhouse gas emissions, and carbon taxes similar to those proposed by the EU are seen in economist circles as a viable solution in militating climate change and levelling the playing field.
Nevertheless, Leach pointed out that these measures are in fact complex mechanisms to use, while there are several risks that may be faced by domestic economies, as the development of carbon import taxes have not yet reached their inception. Accordingly, the authors of the report concluded that while, only about five per cent of Canada’s total industrial exports are destined for Europe, the risk on the domestic economy would be more significant if more countries implement this instrument.
