EU Carbon Border Tax May Impinge on WTO Rules – Russian Deputy PM
Reuters reported that Russian Deputy Prime Minister Mr Alexander Novak told the ministry's inhouse magazine that the European Union's plans to impose carbon emission costs on imports of goods may clash with the global trade rules and threaten the safety of energy supplies.He told that “Such carbon border taxes could be extended in coming years to oil, natural gas and coal, key sources of revenues for Moscow's state coffers. Many experts believe that the introduction of the carbon border tax may infringe on several principles of the World Trade Organization.”
He also called for the need to seek a compromise and warned about possible interruptions of energy supplies. He said "Artificial restrictive measures of the traditional fuel and energy sectors may reduce the profitability and investment attractiveness of the sector, and as the result, the threat to the safety of energy supplies will emerge.”
The EU plans to impose carbon emission costs on imports of goods including steel, cement and electricity. The European Commission has said such a measure would be fully compliant with World Trade Organisation rules.