Friday, September 11, 2009

French President Sarkozy Calls for EU "Carbon Tax" on Imports

French President Nicholas Sarkozy has reiterated his support for an EU "carbon tax" on imports from countries that have not implemented carbon reduction plans.

Speaking to factory workers in France earlier this week, President Sarkozy said, "I will not accept a system...that imports products from countries that don't respect the rules [on carbon emission reductions]," the Financial Times reported ("Sarkozy in New EU Carbon Tax Call," Sept. 11, 2009). "We need to impose a carbon tax at [Europe's] borders. I will lead that battle," he said.

Is this a realistic possibility or a dream on the French president's part? Hard to say for sure. However, if the EU is disappointed with the UN climate change conference in Denmark in December, then will they feel compelled to institute such a tariff? Tax measures at EU level are very difficult to legislate, and it is entirely possible that one or more of the 27 member states would object to such a move.

In addition, the message to non-carbon reducing countries (which currently include China, India, and the U.S. to name just three) might be construed as environmental protectionism.

But let's first see what happens in Copenhagen and then revisit President Sarkozy in mid-December.

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