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Global Warming's goal is more Taxation |
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Saturday, 12 September 2009 |
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Nicolas Sarkozy, the French president, renewed his call for a European carbon tax on imports to the bloc on Thursday as he unveiled details of a new charge on fossil fuel products in France.
“I will not accept a system ... that imports products from countries that don’t respect the rules [on carbon emission reductions],” he said in a speech to factory workers in the eastern Ain region of France.
“We need to impose a carbon tax at [Europe’s] borders. I will lead that battle.”
The French president has in the past sparked accusations of protectionism after calling for European import tariffs on products from countries that do not abide by international targets on carbon emission reductions.
On Thursday economists warned that such an initiative – likely to be supported by some European countries such as Italy – could have catastrophic consequences for the ongoing attempts to strike a global trade deal.
“This would put the developed world on a collision course with China, India and other developing countries. It could do serious damage to the international trade system,” said Simon Tilford, chief economist of the Centre for European reform. “It would be seen as naked protectionism.”
Mr Sarkozy sought to defend his position, which is clearly aimed at making France’s own carbon tax more palatable in the face of strong public opposition.
“A carbon tax at the border is the natural complement to a domestic carbon tax. More importantly, a carbon tax at the borders is vital for our industries and our jobs. This has nothing to do with protectionism,” he said. “This is about fair play.”
France will become the largest economy to levy a carbon tax when it comes into effect next year.
Mr Sarkozy set the tax at €17 per tonne of carbon emissions, just above the €14 signalled by François Fillon, his prime minister, last week, but still far below the level recommended by environmental activists.
This represents about 4.5 centimes per litre of diesel, or 4 centimes per litre of petrol and 0.4 centimes per kilowatt hour of gas.
In a concession to concerns within his own party about the impact of a new tax on poorer and rural households, Mr Sarkozy said the tax would be offset by reductions in income tax or special “green cheques” for those below the tax threshold.
“The creation of the carbon tax will not increase charges in our country,” he said. No household or business would be worse off as a result, he added, and an independent commission would be set up to monitor the impact of the tax. 
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