Climate change
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The OECD is seeking a new global approach to carbon prices that hopes to prevent trade wars from escalating between countries with a wide range of green ideas.
The international club in Paris seeks to pursue its success in creating the first international alliance on corporate taxes in the same way on carbon prices. This would allow economies such as the EU to be more proactive in reducing emissions by imposing permissible carbon taxes on exports from the poorest countries.
Mathias Cormann, OECD secretary general, called on the EU to support the plan at a meeting of EU finance ministers last week, according to observers. Cormann requested that the European Commission approve the project.
Establishing a carbon price is considered to be the best way to reduce oil as pollutants can be taxed due to the air they emit. One of its main points, however, is recognizing the value it should be. The OECD believes it has a global solution.
The price of enough carbon to reduce the temperature rising to below 2 ° C seems to be the farthest point from the US, China and India. They prefer to use household rules to reduce emissions, such as banning coal-fired power plants.
Instead the EU is continuing with a plan to increase carbon prices on shippers within the bloc. In addition, it has promised to protect domestic industries through carbon taxes on exports, such as iron and cement that emits high levels of carbon.
However, the approach has produced shouts from EU business partners who see it as a trade tax.
Chuma Chuma
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John Kerry, US President Joe Biden’s envoy on climate change, was warned The EU in March that tax changes at the carbon border should be a “last resort” and could have a “significant impact on trade and commerce”. Kerry said this in the US you might think the same plot, though, was carefully considered.
OECD officials secretly oppose the EU approach. He fears that it could lead to EU higher carbon taxes if only they were careful clearly carbon prices set by other economies.
Instead, the OECD wants the EU approach to integrate logical The carbon taxes used by other countries have various measures to reduce carbon emissions, such as banning coal-fired power plants.
Combining these strategies could reduce the risk of a global trade war on environmental issues. That is why Cormann, a former Australian government official who has been left behind in the reform process, raised the OECD agenda at a meeting of 27 EU finance ministers in Slovenia on Saturday.
Under the OECD plan, countries and economists will use a voluntary approach to agree on how to generate carbon tax rates and other ecosystems. This would help to facilitate the establishment of international taxes, and to prevent possible wars.
A European Commission official stated: “We are always ready to talk to all our partners and we are ready to work with the OECD. We also know how difficult it will be to find global cooperation on carbon prices, and time is not on our side. ”
Most of the wealth is already in the air market, which involves the purchase and sale of greenhouse gas emissions. This includes the EU, which has seen carbon dioxide prices are rising above € 60 per ton on its trading platforms this year.
China is also recently introduced Its ETS is small, and California uses a large and commercial program.
The International Monetary Fund (IMF) has said the $ 75-ton carbon target will be used globally by 2030, but this has not received international support.
The EU has recently released measures to achieve its goal of reducing bloc emissions by 55% by 2030, compared to 1990. .