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Australian government stokes fears that Europe’s new carbon levy could hurt jobs
(The Guardian, 14 Jul 2021) Dan Tehan criticises tarffs as ‘just a new form of protectionism’ despite Australia’s major exports being mostly spared in initial stage.
The Morrison government has renewed fears that the European Union’s new carbon tariffs could hit Australian jobs, despite Australia’s major exports being largely spared from the first stage of the scheme.
Exports to Europe of cement, iron and steel, aluminium, fertiliser and electricity are the first to face potential costs under a new climate policy unveiled by the EU late on Wednesday night Australian time.
The carbon border adjustment mechanism will require EU-based businesses that import goods to pay a price, linked to what they would have paid if the items had been produced under the EU’s own emissions trading scheme.
The goal is to prevent “carbon leakage” – or the movement of emissions-intensive industry – to countries with less ambitious climate policies. The policy also aims to encourage producers globally to reduce their emissions and for countries to adopt greener policies.
The Guardian, 14 Jul 2021: Australian government stokes fears that Europe’s new carbon levy could hurt jobs
