Proposals by the European Union to impose a carbon border tax will damage global efforts to tackle climate change, Zhao Yingmin, China's deputy environment minister, said on Wednesday, November 27.
The EU's new climate commissioner Frans Timmermans had said in October that research would begin on the new tax, which is aimed at protecting European firms from unfair competition by raising the cost of products from countries that fail to take adequate action against climate change. Europe's border tax plans are likely to face scrutiny in the latest round of annual international climate negotiations set to begin in Madrid next week.
The Chinese deputy environment minister stated, "We need to prevent unilateralism and protectionism from hurting global growth expectations and the will of countries to combat climate change together." Market sources believe a tax would raise the price of Chinese goods entering Europe.
The idea of a carbon tax has been welcomed by the European Steel Association (EUROFER) and also by some European steel producers. "A carbon border adjustment is an effective and fair way to ensure every country plays its part in reducing global CO2 emissions," ArcelorMittal Europe Flat CEO Geert Van Poelvoorde said last month. He also added that, otherwise, European steelmakers would be unable to compete and carbon emissions would be shifted to parts of the world where production is cheaper, a phenomenon known as carbon leakage.
However, the proposal for a carbon border tax in the EU has been opposed by other industry groups in the region that are concerned about retaliatory trade measures.