China has said that the EU's plans to introduce a carbon border tax will violate the principles of international trade and damage the prospects for economic growth, Reuters reports.
In July, the European Commission presented its draft carbon tax, aimed at introducing a mechanism known as the Carbon Border Adjustment (MACF) from 2026. This project provides for the taxation of companies that import goods such as steel, cement, and electricity into the European Union.
вЂњThe MACF is, in fact, a unilateral measure aimed at spreading the problem of climate change to the trade sector. It violates the principles of the WTO (...) and it will seriously undermine mutual trust in the world community and the prospects for economic growth,вЂќ the press secretary of the Ministry of Ecology and the Environment said.
He reiterated China's position that each country's response to climate change should take into account the level of its economic development. According to him, a tax on CO2 emissions will seriously undermine the desire and ability of countries to solve this problem.
As the world's largest producer of industrial raw materials such as steel and cement, China could be most affected by the system of border tariffs, researchers from the Center for Industrial Development and Environmental Management of Tsinghua University said in an article published in May.
However, they added that this impact will pass over time and that there is no evidence that the tariff will have a negative long-term impact on China's development.