the EU will strive towards a more stringent climate targets. For example, when emissions from industry in Europe is limited, production is tipped.
the Same stuff is able to bring lower prices to, say, India, where emissions are not limited, and production will move from Europe to elsewhere.
in Response to this, the so-called. carbon leakage the threat of Ursula von der Leyenin the commission promises to do immediately through the start of the presentation to the coal duties. Customs is practically on the border amount to be collected, the purpose of which is to equalize the weights of european production and higher emissions in the production of the imported goods between.
in Practice, the EU imported products would be levied at the border some kind of climate emissions tied to an additional fee. The payment would be equivalent to the additional fee, which the european manufacturer has had to pay for the emissions trade.
– This (carbon customs) is the way to combat carbon leakage and to protect Finnish jobs. We see this as important, say trade unions of the central organisation SAK’s economic affairs chief Lauri Murase .
Murase, according to the carbon duty, you could at the same time, as well as to serve the climate and to protect the industry from unfair competition. Also Finnish economists consider carbon tariffs on average a good idea: Two of the three ekonomistista supported the ideas of the economists of the machine in the query (switch to another service) over the last year.
the Duty would be levied only on products for which manufacturers are not required to pay the allowances. Thus, the system would encourage, for example, China or India to adopt a similar emissions trading scheme which the EU is active.
This is a way to get to the objective that emissions will be priced at around the world, Murase said.
the coal duties should in Europe, above all in the steel industry. Outokumpu’s ceo Roeland Baan recently said the Technology and economic magazine interview (move to another service), that Asia produced steel tonnes carbon footprint is up to ten times the european production front. Dirty more so the cheaper the production that asian competitive advantage.
the confederation in the idea of carbon tariffs to take, however, have reservations, because some of the Finnish companies also benefit from cheap imports of steel used.
– It involves a lot of risk. The Finnish export industry uses a lot of intermediate products, whose price would increase and Finland’s competitiveness might weaken this relationship, says EK’s leading expert Matti Kahra .
EK:according to the coal duties would be too heavy measure of individual industries to protect. They might take the world economy more protectionist, more direction, if the EU’s trading partners would be equivalent to the coal duties in own trade barriers are.
cargo ship of the European busy the most in the port of Rotterdam. KJ is afraid of the coal duties would harm foreign trade.Petri Raivio / Yle
the Chinese ministry of the environment Zhao Yingmin said last week that the EU carbon duties envisaged hamper international climate negotiations, which resume this week in Madrid.
– the Risk is that this will also become a trade war, escalate the issue. Here we are industry very worried, Kahra said.
according to the Commission, carbon purpose of the duties would be to prevent carbon leakage, i.e. saaastuttavan the production of lachrymatory outside the EU. So far, the carbon leakage is, however, not signs.
We have not seen any evidence that such actually happened, said the coal market in the next Carbon Market Watch organization expert Sam van den Plas by telephone from Brussels.
there are two reasons: the price of emission rights had long been very low, and is also distributed free of charge to the most polluting sectors of industry. For example, steel, cement and chemicals industry are getting most of their allowances for free.
Sandbag.org Harri, a little fabric / Yle
for free share purpose has been the same as the coal duties, i.e. the competition handicap of the EU’s own production and foreign competitors in between. Van den Plas wondering marks new commission of the enthusiasm injected along with the coal duties at the same time when the allocation of free allowances to continue.
– Discussion of carbon tariffs is only useful if the allocation of free allowances at the same time is dropped, van den Plas said.
– This is seen as a tool to protect the climate, no industry, he said.
for Example, SAK’s model in the coal duties were taken into use until the free share at the end. But it will take more time.
As the EU’s emissions trading system recently overhauled, for free distribution, it was decided to continue until 2030. The industry distributed free of charge 6.5 billion emission rights unit, whose calculated value is CMW’s count, there are around 160 billion euros.
the allowances of low prices and free share have also led to the fact that the steel, cement and chemicals industry are not in the EU to lower emissions practically non-existent in recent years.
Van den Plas suspects that carbon tariffs can create a european heavy industry, just another reason not to seize effective climate action, if the duty system fails genuinely to favour low-emission production, be it the EU inside or outside.
in Finland, Antti Rinne (sd.) the government has in its programme promised to sort out the coal duties in the development of the EU-level. Report is launching next spring.
Von der Leyenin program according to customs are to be designed in such a way that they comply with the world trade organization WTO rules. The rules basically allow customs duties to protect the environment, but the payment will not protect the domestic industry in relation to the other.
the customs data is also not can be prescribed only by certain countries for the production, but the criteria must be the same for all imports.
the carbon footprint based on the amount of the fee reduction would require the precise information about how much steel or cement tonnes production has produced a climate emissions, for example in India or China.
Eurofer, Harri little fabric / Yle
at Present, such information is not available. Carbon customs presentation should answer the question of how third-country production emissions could be to collect reliable information.
the Commission’s idea of a carbon tariff implementation should be more information in the coming months. Possible motion should, however, still get through the European parliament and the member states for processing. France has been the idea most prominent supporter.
Carbon Market Watch, the essential question at that point is the issue of whether carbon tariffs tax issue or environmental issue. The tax matters agreement requires the EU member states ‘ unanimous decision, which has recently proved to be almost impossible to achieve.
– it Is important to review this environmental policy instrument, which only requires member states qualified majority, van den Plas said.
So that carbon tariffs can be a deal with the environmental issue, the commission should in his view be able to prove that they accrue benefits to the environment.
Subscribe Yle newsletters!
Get Overeating the best content straight to your inbox! Order as many letters as you want!
Proceed to order