EU divided over import tax on polluters

Powerful emerging market economies could be hit by a proposed EU carbon tax
on imported goods.

The proposal has created huge divisions within the EU. Trade Commissioner
Peter Mandelson said the proposal could fall foul of the World Trade
Organisation. Stavros Dimas, the Environment Commissioner is working hard to
push the policy through

Europe is committed to reducing emissions by 20% by 2020, but the EU Trade
Commissioner’s office said introducing a carbon tax on imports would be ‘too
complicated’ and would create problems with countries such as the US, which had
not signed the Kyoto Protocol on climate change.

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