He suggested that goods whose production was heavy on carbon emissions should face a “carbon border tax” if there wasn’t a satisfactory carbon tax in their country of origin. This proposed border tax would only apply to goods that involve lots of greenhouse gas emissions in their production, such as cement and steel. Once a carbon border tax was imposed, it would be possible to levy a common high tax on emissions from heavy industry in the EU without the fear that they would relocate elsewhere. Lamy also indicated that, because of the targeted nature of the border tax, it would fit in with existing trade agreements. Ireland already has a carbon tax but, if effective action is to be taken to dramatically cut greenhouse gas emissions, it may need to ramp that tax up much more rapidly than currently planned.

Source: The Irish Times May 21, 2021 04:09 UTC