Regis Philbin
Dec 17th, 2006, 10:22 PM
http://www.ft.com/cms/s/9dc90f34-8def-11db-ae0e-0000779e2340.html
EU trade chief to reject ‘green’ tax plan
By Andrew Bounds in Brussels
Published: December 17 2006 22:12 | Last updated: December 17 2006 22:12
The European Union’s trade commissioner will on Monday dismiss French proposals for a “green” tax on goods from countries that have not ratified the Kyoto treaty as not only a probable breach of trade rules but also “not good politics”.
Peter Mandelson says that the levy, aiming to cancel the competitive advantage of countries that are not cutting carbon emissions to fight global warming, would be “highly problematic under World Trade Organisation rules and almost impossible to implement in practice”.
The proposals are gathering support after Günter Verheugen, industry commissioner, backed the idea after it was separately proposed by an advisory group of EU government officials and industry leaders he co-chairs.
“Not participating in the Kyoto process is not illegal. Nor is it a subsidy under WTO rules,” Mr Mandelson will warn in a podcast speech to 50,000 subscribers. “How would we choose what goods to target? China has ratified Kyoto but has no Kyoto targets because of its developing country status. The US has not ratified but states like California have ambitious climate change policies.”
Above all, he says, it would undermine the international co-operation required to combat climate change.
Dominique de Villepin, the French prime minister, embraced the idea last month amid fears that EU efforts to curb emissions are driving up power prices and industrial costs.
In contrast, Mr Mandelson backs a plan, to be unveiled this week, to include in the EU’s carbon emissions trading scheme all airlines landing or taking off in the EU, even though it is likely to antagonise the US and Asian countries.
EU trade chief to reject ‘green’ tax plan
By Andrew Bounds in Brussels
Published: December 17 2006 22:12 | Last updated: December 17 2006 22:12
The European Union’s trade commissioner will on Monday dismiss French proposals for a “green” tax on goods from countries that have not ratified the Kyoto treaty as not only a probable breach of trade rules but also “not good politics”.
Peter Mandelson says that the levy, aiming to cancel the competitive advantage of countries that are not cutting carbon emissions to fight global warming, would be “highly problematic under World Trade Organisation rules and almost impossible to implement in practice”.
The proposals are gathering support after Günter Verheugen, industry commissioner, backed the idea after it was separately proposed by an advisory group of EU government officials and industry leaders he co-chairs.
“Not participating in the Kyoto process is not illegal. Nor is it a subsidy under WTO rules,” Mr Mandelson will warn in a podcast speech to 50,000 subscribers. “How would we choose what goods to target? China has ratified Kyoto but has no Kyoto targets because of its developing country status. The US has not ratified but states like California have ambitious climate change policies.”
Above all, he says, it would undermine the international co-operation required to combat climate change.
Dominique de Villepin, the French prime minister, embraced the idea last month amid fears that EU efforts to curb emissions are driving up power prices and industrial costs.
In contrast, Mr Mandelson backs a plan, to be unveiled this week, to include in the EU’s carbon emissions trading scheme all airlines landing or taking off in the EU, even though it is likely to antagonise the US and Asian countries.