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EU’s planned carbon border levy violates trade principles, says China

(EurActiv, 26 Jul 2021) The European Union’s plan to impose the world’s first carbon border levy will expand climate issues into trade, both violating international principles and hurting prospects for economic growth, China said on Monday (26 July).

The carbon border adjustment mechanism (CBAM) was tabled by the European Commission this month as a CO2 tariff on polluting goods to protect European companies facing higher carbon prices and decarbonisation costs.

Coming into force from 2026, it will mean some companies importing into the European Union will have to pay pollution costs at the border on carbon-intensive products, such as steel.

But it has always been a controversial measure with Europe’s trade partners because it brushes against World Trade Organisation (WTO) rules.

“CBAM is essentially a unilateral measure to extend the climate change issue to the trade sector,” said Liu Youbin, a spokesman of the Ministry of Ecology and Environment at a media briefing.

“It violates WTO principles … and (will) seriously undermine mutual trust in the global community and the prospects for economic growth,” he said.

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EurActiv, 26 Jul 2021: EU’s planned carbon border levy violates trade principles, says China