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tcetoday news: US carbon tariff idea sparks Chinese outrage

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19/3/2009

US carbon tariff idea sparks Chinese outrage

   
China pushes for importers to pay for emissions

by Claudia Flavell-While

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Cutting carbon emissions costs money - but who should pay?

 

CHINA has rejected US ideas of introducing an import duty on carbon-intensive goods as protectionism.

 

The US energy secretary Steven Chu had floated the idea of imposing import duties on carbon-intensive goods manufactured in countries that do not take strong action on climate change. Speaking before the science panel of the House of Representatives, Chu said that such a tariff would “level the playing field” between those countries that have introduced carbon taxes and other strict measures to reduce emissions, and those that have not, particularly in the rapidly rising economies in Asia.

 

However, Chinese officials are opposed to such moves, warning that such import duties would be illegal under the rules of the World trade Organisation and their introduction could spark a trade war. Xie Zhenhua, head of China's Climate Change and Coordinating Committee told a Washington think tank: "I oppose using climate change as an excuse to practise protectionism on trade.”

 

He also rejected the notion that China is not doing enough to combat climate change, pointing to efforts by the Chinese administration to use taxes and financial incentives to encourage industry to cut emissions. 

 

Instead of import duties, China wants importers of carbon-intensive goods to take financial responsibility for the associated emissions under any international new climate accord. In an interview with the BBC, China’s climate negotiator Li Gao said:"We produce products and these products are consumed by other countries, especially the developed countries. This share of emissions should be taken by the consumers but not the producers."

 

European experts are sceptical as to whether such a deal could work, given that European importers have little control over the industrial practices employed in China and that there is not much they can do to limit emissions at their source.