Monday, 03 MAY 2010 - CATEGORY : MARKET NEWS
A working document from the European Commission sheds light on the difficulties of introducing a carbon tax at the borders of the European Union.
The introduction of a European CO2 tax is generating plenty of column inches. Some say it would help protect Europe’s economy, while others insist that countries with less strict environmental policies would gain a commercial advantage if Brussels was to adopt more stringent rules on emissions.
"The administrative costs of the collection of this tax are exorbitant, as the system requires a host of different rates that vary according to the products and countries concerned ", the Commission states. "There is also a risk of the plan triggering a commercial war. Rival economic powers, such as China, will not hesitate to take retaliatory steps."
The introduction of a European CO2 tax is generating plenty of column inches. Some say it would help protect Europe’s economy, while others insist that countries with less strict environmental policies would gain a commercial advantage if Brussels was to adopt more stringent rules on emissions.
"The administrative costs of the collection of this tax are exorbitant, as the system requires a host of different rates that vary according to the products and countries concerned ", the Commission states. "There is also a risk of the plan triggering a commercial war. Rival economic powers, such as China, will not hesitate to take retaliatory steps."
TAGS : europe, carbon_tax
