Carbon tariffs are “eco-imperialism”

 A proposal in the ALP’s Draft Platform to introduce a form of green protectionism or “carbon tariffs” may be in breach of World Trade Organisation rules.

Media reports emanating from Europe reveal that the European Union has warned against the imposition of carbon tariffs on countries that do not join a global greenhouse deal.

France, according to the reports, is believed to have said they could be used as a last resort, while Germany has labelled the concept as “eco-imperialism” and that they may breach WTO rules.

Last week Agitate! uncovered a plan to introduce carbon tariffs by the ALP.

The Platform, under Section 71 - “Trade, development and wider policy goals” states that:

“Labor will ensure that appropriate mechanisms are introduced to prevent environmental dumping whereby nations which fail to implement international agreements to reduce greenhouse emissions are able to avoid the costs of greenhouse gas reductions.”

This is nothing more than or less than protectionism – a virus that is spreading around the world in the face of the Global Financial Crisis and the potential failure to reach an international accord on climate change and emission abatement.

The United States House of Representatives has already passed legislation that would allow the imposition of carbon tariffs.

The push to introduce carbon tariffs is a recognition that unilateral action on climate change can significantly impact on a countries industrial prosperity and on jobs

(Further it is an acknowledgement that there could be significant carbon leakage unless energy intensive industries get tariff protection or carbon credits that will shelter them from the impact of an ETS)

In their own way the subsidies that industries are seeking in the form of compensation or free credits are no more than another form of protection.

The answer is not subsidies or carbon tariffs rather the world needs to act in concert on emissions rather than nations acting unilaterally before any agreement has been reached world wide.

The push for carbon tariffs in Europe and the USA should be a wake up call to the federal government that it cannot act unilaterally.

The Rudd government should be taking heed of the developments around the world and the first one of these is that there is yet no global consensus on the way ahead with carbon reduction.

Instead of puerile politics with a digital clock on the ALP website supposedly counting down the days to when the ALP says the Opposition must make a decision on climate change, the government should act in the national interests as opposed to its political interests.

That means postponing any action on the introduction of an ETS until at least after the Copenhagen conference in December.

If, as the Prime Minister has said, climate change is one of the great issues facing the world, it is imperative than when we ac, we act t in concert with the rest of the world.

Unilateral action by Australia cannot and will not make a jot of difference to global warming/climate change as we emit just 1.4% of the world C02.

Australia alone cannot prevent any rises in sea levels; cannot prevent coral bleaching; cannot prevent droughts; cannot prevent any increases in temperature; cannot prevent storms or any other of the so called catastrophic events that are said to be caused by climate change/global warming.

But Australia acting alone can damage the national interest. In Australia’s interest the Prime Minister should cease with the politics. He should abandon any attempt to impose arbitrary deadlines on when decisions are made on what sort of ETS we have and when it is introduced.

(And as Agitate! has recent noted the government should not rule out nuclear power if it is serious about reducing emissions and protecting Australian industry and jobs)

And importantly the Prime Minister should renounce any form of protectionism – in this case green protection or carbon tariffs, or as the Germans say “eco-imperialism.”

Australia’s interest lies in trade and not protectionism. Any ETS that is introduced must not disadvantage Australian industry nor should it lead to tariffs or distorting subsidies.

Our industries should be able to operate on par with those of our competitors and that should not be achieved by carbon tariffs – rather via an equitable and balanced global emissions trading agreement.

The push for carbon tariffs sends a fearful message that the world may once again be slipping into a protectionist mode.

Protectionism and the contraction of the global economy and tightening of worldwide finance could see a deepening and lengthening of the crisis besetting the world.

Carbon tariffs will disadvantage developing nations and as with any other tariff lead to fat and lazy industries. For a trading nation such as Australia this is not an option that will increase our living standards or overall wealth.

For developing nations a retreat to protectionism means condemning billions of people to reduced standards of living.

Trade is the world’s life blood – a retreat to protectionism is not an option regardless of whether or not it is in the name of global warming or climate change.