“It is important that the European Union is among the first to take the initiative on climate change”

“It is important that the European Union is among the first to take the initiative on climate change”

Il should congratulate theEuropean Union (EU) for its sustained efforts to take responsibility for its contribution to the climate crisis and for its search for innovative policies to combat climate change.

However, a just climate transition on a global scale must ensure that the progress made by a community on climate change does not translate into development losses for countries that contributed little to the climate crisis in the first place.

Although far from perfect, EU investments in low-carbon growth through European Investment Bank (ECB), its regulations on the private sector and his new green deal are all important advances that far outstrip the efforts of many other large historical carbon emitters.

Welfare losses

The latest novelty of the EU climate toolkit is a carbon border adjustment mechanism (MACF) which is very innovative. According to the EU, the MACF aims To “to avoid neutralizing the EU’s efforts to reduce greenhouse gas emissions by imports of products manufactured in third countries, where climate change policies are less ambitious than in the European Union. It will also help prevent relocation of production or import of carbon-intensive products”.

Read also: Article reserved for our subscribers The European Union adopts a carbon border tax to green its industrial imports

Inasmuch as second largest contributor to historic carbon emissions, it is important that the EU is among the first to take the lead on climate change. Linking a MACF to the EU Emissions Trading Scheme and other regulations is an important part of the growing family of measures that will be needed for the EU to be at the forefront of climate action.

However, the EU also has a responsibility to tackle the “negative effects of the transition” which may arise from the MACF. In our new studycarried out as part of the Working Group on Climate, Development and the International Monetary Fundwe find that countries that depend on carbon-intensive exports to the EU will be disproportionately affected by the MACF.

Read also: Article reserved for our subscribers Marie-Françoise Calmette: “The carbon border tax is a step forward, but at what cost? »

Welfare losses in developing countries like Ukraine, Egypt, Mozambique and Turkey are between $1 billion and $5 billion [entre environ 935 millions et 4,7 milliards d’euros], which is considerable compared to their gross domestic product (GDP). Mozambique’s economy would contract by 2.5% due to lower demand.

You have 49.94% of this article left to read. The following is for subscribers only.

Source link