French President Nicolas Sarkozy called on 6 January for a carbon tax across Europe and punitive tariffs on products that fail to meet climate standards. “We will not accept goods that fail to conform to our environmental standards,” Sarkozy told business leaders at a New Year’s reception in the western town of Cholet. “In future we will levy a ‘climate tax’ at Europe’s borders,” said the president, adding that he wanted to see an end to so-called eco- dumping.
Sarkozy said that it was unfair to impose carbon tax on French enterprises while letting other countries neglecting their environmental responsibilities.
Sarkozy’s own plans for a carbon tax were dealt a blow two weeks ago when France’s Constitutional Council ruled that it cannot come into force, as industrial- origin carbon dioxide emissions would be almost totally exempt, letting some of the worst polluters, such as refineries, off the hook.
The French government is revising Sarkozy’s pillar bill of carbon tax. The council said the bill contains too many exemptions. More than 1,000 of the country’s top polluters would have been able to dodge the tax, it said. The first law stipulates a tax of €17 ($25) per ton of carbon dioxide emissions on oil, gas and coal consumption. The French cabinet is expected to come up with a renewed version of carbon tax bill. French Environment and Energy Minister Jean Louis Borloo is scheduled to present the revised text on January 20. Sarkozy said on 5 January that he would like to see the revised bill to take effect on July 1.
Polls showed the tax was opposed by roughly 70% French citizens. Opposition Socialist and Green parties welcomed the Constitutional Council ruling, saying it would prompt the government to rethink its environment policies.
The carbon tariff on EU borders promoted by Sarkozy is not so much welcomed by its EU neighbors either. Participants of an EU environmental ministerial meeting last July have voiced opposition to the proposal. A carbon tariff would be a new form of “ecological imperialism,” and it would send out a wrong signal, said a German representative to the gathering.
Meanwhile, many developing nations believe the tariff, which was no difference to another trade barrier, would further threaten world trade equality.