U.S. Favors Early Action on Climate Friendly Trade

Resetting the 'rules of the game' is crucial for laying a policy framework that favors clean technologies and disincentivizes polluting ones.

Reuters reports:

Washington believes reducing tariffs and other trade barriers on technologies that help countries reduce carbon dioxide emissions could be an important component of international action to address climate change.

At the same time, the House of Representatives has aroused international concern by including language in its climate bill that would allow the United States to impose a "carbon tariff" on imports from countries the president believes are not doing enough to reduce greenhouse gas emissions.

That "would be a nuclear option in terms of trade consequence. For example, such an action by the U.S. and EU would be the equivalent of imposing a tariff of over 20 percent on China and India, resulting in lost exports of 20 percent," a recent World Bank study said.

Having the right incentives in place is a crucial element of our transition to a green economy.  Hopefully these types of policies can be implemented soon...

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