Carbon border taxes raise international dispute risks

2021 ◽  
Keyword(s):  
Emission Trading ◽  
Climate Mitigation ◽  
Trade Disputes ◽  
Content Type ◽  
Adjustment Mechanism ◽  
Climate Policies ◽  
International Dispute ◽  
Demand Patterns ◽  
The Eu ◽  
Border Adjustment

Significance Increasingly demanding climate mitigation targets in some economies have raised concerns over industry competitiveness and possible relocations of carbon-intensive industries. The EU plans a ‘carbon border adjustment mechanism’ (CBAM), effectively a tax, by 2023, to penalise imports from economies without comparable climate policies. These types of measures strengthen industry support for such policies, but risk triggering trade disputes. Impacts Efforts to link different emission trading schemes will grow. Decarbonisation policies will change demand patterns for manufacturing inputs. Developing countries’ climate diplomacy will need to be coordinated with their trade ministries.

scholarly journals The global trend towards decarbonization of the economy, the introduction of the Carbon Border Adjustment Mechanism in the EU and the possible consequences for Russia

2021 ◽  
Vol 129 ◽  
pp. 09021
Author(s):  
Vladimir Sh. Urazgaliev ◽  
V. Novikov Andrey ◽  
A. Menshikova Galina
Keyword(s):  
Carbon Dioxide Emissions ◽  
Economic Relations ◽  
Carbon Neutrality ◽  
Adjustment Mechanism ◽  
Reduce Carbon Dioxide ◽  
Energy Products ◽  
Climate Neutrality ◽  
The Impact ◽  
The Eu ◽  
Border Adjustment

Research background: In the process of implementing the Paris Agreement (2015), Europe is a leader in the formation of new legislative initiatives in order to develop a set of effective measures to reduce greenhouse gas emissions in the atmosphere. The European Commission approved the European Green Deal (2015) - a strategy for achieving the EU parameters of climate neutrality through the transition to a clean circular economy. Its main goal is to reduce carbon dioxide emissions by 2030 by 50 - 55% from 1990 levels and achieve full carbon neutrality of the EU by 2050. As part of this strategy, the Carbon Border Adjustment Mechanism (CBAM) is being developed. The introduction of CBAM means a revolutionary transformation in the system of international economic relations. Purpose of the article is to identify and assess possible risks for producers and consumers, primarily of energy products after the introduction of CBAM, as well as the impact of these risks on Russian exports to Europe. Methods: The authors carried out a comparative analysis of scenarios for the implementation of CBAM in the sectorial and product segments of trade between Russia and the EU. Findings: The article contains comparative assessments of the beginning redistribution of international markets in the sectoral and product coverage of emissions, as well as an analysis of the unfolding contradictions in the verification of methods for determining the carbon footprint in the production chains of the real sector of the economy.

EU-Swiss institutional framework progress will be slow

2018 ◽  
Keyword(s):  
Dispute Settlement ◽  
Technical Assistance ◽  
Stock Exchange ◽  
Emission Trading ◽  
Institutional Framework ◽  
Right Wing ◽  
Dispute Settlement Mechanism ◽  
Content Type ◽  
Eu Member States ◽  
The Eu

Significance Without a dispute settlement mechanism in Swiss-EU relations, Switzerland has no legal leverage to defend its rights. Ironically, such a mechanism is the most controversial element of the institutional framework that Switzerland and the EU have been negotiating since 2014. Impacts If Bern dilutes labour market rules to secure EU concessions, this could prompt new alliances between Swiss left- and right-wing parties. Firms based in the EU will continue to be able to buy and sell titles on the Swiss stock exchange at least until end-2018. A new agreement (pending ratification) will allow 54 heavy-polluting Swiss firms to participate in the EU emission trading system. Joining the European Railway Agency will allow Bern to access technical assistance and facilitate Swiss train operations in the EU. If Bern abides by its plans to renew cohesion payments, new EU member states may obtain funding for vocational education projects.

The EU’s international trade priorities are shifting

2021 ◽  
Keyword(s):  
Climate Change ◽  
Human Rights ◽  
Free Trade ◽  
Content Type ◽  
Labour Standards ◽  
Trade Deals ◽  
Trade Partners ◽  
Global Influence ◽  
The Eu ◽  
Border Adjustment

Significance From the strategy, it appears the EU no longer sees free trade deals as an end in themselves but as another instrument -- alongside tools such as Carbon Border Adjustment Measures (CBAM) and the International Procurement Instrument -- to protect the internal economy and enhance the EU’s global influence on climate change, human rights and labour standards. Impacts The EU’s increasingly protectionist trade agenda risks creating political tensions with trade partners. Closer EU-US cooperation on trade, among other areas, would weaken the prospects for stronger EU relations with China. As old industries die, the population ages and the EU moves towards digitisation, Europe could become more dependent on foreign innovation.

Implementation of the Paris Agreement on Global Climate: European Carbon Blackmail of Russia and Possibilities of Countering It

2021 ◽  
pp. 77-93
Author(s):  
Sergey Anatolyevich Roginko ◽  
Sergey Nikolaevich Silvestrov
Keyword(s):  
Carbon Tax ◽  
Global Climate ◽  
Paris Agreement ◽  
Eu Countries ◽  
Adjustment Mechanism ◽  
The Subject ◽  
Carbon Taxation ◽  
The Eu ◽  
Border Adjustment

The subject of the analysis is the EU initiative to introduce the so-called Carbon Border Adjustment Mechanism developed within the framework of the «European Green Deal» adopted in 2019 and its possible impact on the Russian exporting industries. The author examines in detail the genesis of European initiatives in the field of border carbon tax, draws a parallel between the Border Carbon Correction Mechanism and the early EU initiatives on carbon taxation of flights of foreign airlines operating in airports of EU countries. Recommendations are given on possible measures to hedge risks associated with this EU initiative, including the possibility of blocking the EU initiative in the international arena, including the positions of the leading world powers on this issue, is analyzed. The tactics of interaction on this issue with such large global exporters as China, India, Brazil and others are proposed.

Struggles in the WTO’s dispute settlement procedures: focused on the US power dominance

2016 ◽  
Vol 20 (4) ◽  
pp. 383-397
Author(s):  
Youngmin Kwon
Keyword(s):  
Dispute Settlement ◽  
Developing Nations ◽  
Trade Disputes ◽  
Content Type ◽  
Logit Regression ◽  
Legal Challenges ◽  
The Us ◽  
Dispute Settlements ◽  
Developed Nations ◽  
The Eu

Purpose The purpose of this paper is to investigate differences among member groups, with more detailed division of groups than the existing literatures, during the WTO’s dispute settlement procedures. Design/methodology/approach Trade disputes requested through the WTO’s DSU regimes up until 2011 were statistically described and analyzed using logit regression models. Findings Despite capacity gaps, developing nations have encountered stronger legal challenges from the US and, although without much capacity gaps, similar patterns of litigation rivalries between the US and other advanced countries, with the exception of the EU, have been also found during dispute settlements in the WTO regimes. Research limitations/implications Although the DSU procedures themselves might not be biased for/against certain member groups, there has been some evidence of the struggles of weaker opponent groups of the US during the actual litigation processes. Originality/value Power dominances of the US against developing nations as well as developed nations, other than the EU, have been neglected in many previous researches on the topic with a simple developed-developing dichotomy classification.

scholarly journals Carbon Border Adjustment Mechanism: New Context for EU-Russia Relations

2021 ◽  
Vol 106 (6) ◽  
pp. 63-74
Author(s):  
Anastasia Nevskaya ◽  
◽  
Yulia Baronina ◽  
Keyword(s):  
Emissions Trading ◽  
Compensatory Mechanism ◽  
Trading System ◽  
Adjustment Mechanism ◽  
System A ◽  
Theoretical Approaches ◽  
Trading Partners ◽  
Regional Emissions ◽  
The Eu ◽  
Border Adjustment

The article examines the introduction of the EU carbon border adjustment mechanism (CBAM) as part of the EU economy decarbonization. The implementation of this initiative poses certain risks for the EU trading partners. Moreover, this issue is extremely important for the entire global trading system. The purpose of the study is to assess the real threats of the mechanism for Russian companies and identify opportunities for successful adaptation to the new green realities. The theoretical approaches and prerequisites for the CBAM introduction are analyzed, its systemic effects for companies around the world are shown. The channels and possible scale of this measure’s impact on Russian exporters are considered. The authors analyze the main possible response scenarios for Russia. The most promising scenarios could be: a) intensification of the carbon-free energy and increasing the energy efficiency of production processes, 2) development of an alternative compensatory mechanism, 3) integration into the regional emissions trading system. A possible challenge of the CBAM introduction in the WTO may be ineffective; cooperation with countries outside the “green agenda” – counterproductive. It is concluded that there are opportunities for Russian companies to strengthen their competitiveness due to CBAM requirements. However, there is a lack of expertise in a number of areas and levels, which can hinder the implementation of these opportunities.

scholarly journals ASSESSMENT OF LOSSES OF THE ECONOMY OF KAZAKHSTAN FROM THE INTRODUCTION OF THE EU BORDER CARBON TAX

2021 ◽  
Author(s):  
С.Н. Алпысбаева ◽  
А.А. Бакдолотов ◽  
Н.Н. Жанакова ◽  
S. Alpysbayeva ◽  
A. Bakdolotov ◽  
...  
Keyword(s):  
Carbon Tax ◽  
Global Supply Chain ◽  
Import Duty ◽  
Preliminary Assessment ◽  
Adjustment Mechanism ◽  
Reduction Of Emissions ◽  
The Republic ◽  
The Impact ◽  
The Eu ◽  
Border Adjustment

Статья посвящена изучению вопроса введения ЕС углеродного корректирующего пограничного механизма (далее - УКПМ), в структуре которого предусмотрена импортная пошлина на углеродоёмкие импортные товары. Для экспорто-ориентированных стран данный налог означает наличие высоких рисков снижения выручки от экспорта энергоресурсов в Европу, а также в другие страны. Авторами изучены предпосылки введения углеродного корректирующего пограничного механизма, введение и реализация которого ориентирована на сокращение выбросов парниковых газов в ЕС, а также стимулирование сокращений выбросов в других странах. Представлены краткие результаты проведенных международных исследований таких компаний, как Boston Consulting Group, KPMG по оценке эффектов введения УКПМ на международную торговлю. В статье также сделана предварительная оценка потерь Казахстана от введения ЕС углеродного корректирующего пограничного механизма, с использованием подхода «Что-Если» на основе данных 2019 года. Согласно проведенным расчетам, если бы в 2019 году, экспорт подвергался бы углеродному налогу в рамках углеродного корректирующего пограничного механизма, то потери составили бы минимально $157,5 млн. или 2,1% поступлений в Национальный фонд РК, и максимально, предполагая, что весь экспорт используется в глобальных цепочках поставок товаров в Европу, $576,4 млн. или 7,7% поступлений в Национальный фонд РК. The article is focused on the study of the introduction of the carbon border adjustment mechanism (hereafter CBAM) by the EU, the structure of which considers an import duty on the carbon-intensive goods. For export-oriented countries, this tax implies a higher risk of reduced revenue from carbon-related energy exports to Europe, as well as to the other countries. The authors studied the prerequisites from CBAM introduction, the development, and implementation of mechanism which the aim is to reduce greenhouse gas emissions in the EU, as well as to stimulate the reduction of emissions in other countries. The brief results of studies of international companies, such as Boston Consulting Group and KPMG, are presented on the assessment of the impact of introducing CBAM on international trade. The article provides a preliminary assessment of Kazakhstan's losses due to the carbon border adjustment mechanism introduced by the EU, using the "What-If" approach based on 2019 data. According to the calculations, if CBAM was implemented in 2019 and carbon exports were taxed according to the mechanism, the estimated losses would be $157.5 million, or 2.1% of the revenues of the National Fund of the Republic of Kazakhstan, at minimum. At maximum, with an assumption that all exports that are used in the global supply chain of goods to Europe, the revenue losses would become $576.4 million, or 7.7% of the revenues of the National Fund of the Republic of Kazakhstan.

scholarly journals Environmental, social and governance disclosures in Europe

2015 ◽  
Vol 6 (2) ◽  
pp. 224-242 ◽  
Author(s):  
Mark Anthony Camilleri
Keyword(s):  
Emission Trading ◽  
Pollution Prevention ◽  
Annual Reports ◽  
Member States ◽  
Content Type ◽  
Eu Countries ◽  
Eu Member States ◽  
Trading Scheme ◽  
National Governments ◽  
The Eu

Purpose – The purpose of this paper is to shed light on the European Union’s (EU) latest regulatory principles for environmental, social and governance (ESG) disclosures. It explains how some of the EU’s member states are ratifying the EU Commission’s directives on ESG reporting by introducing intelligent, substantive and reflexive regulations. Design/methodology/approach – Following a review of EU publications and relevant theoretical underpinnings, this paper reports on the EU member states’ national policies for ESG reporting and disclosures. Findings – The EU has recently revised a number of tools and instruments for the reporting of financial and non-financial information, including the EU’s modernisation directive, the EU’s directive on the disclosure of non-financial and diversity information, the EU Energy Efficiency Directive, the European pollutant release and transfer register, the EU emission trading scheme, the integrated pollution prevention and control directive, among others. Practical implications – Although all member states are transposing these new EU directives, to date, there are no specific requirements in relation to the type of non-financial indicators that can be included in annual reports. Moreover, there is a need for further empirical evidence that analyse how these regulations may (or may not) affect government entities and big corporations. Social implications – Several EU countries are integrating reporting frameworks that require the engagement of relevant stakeholders (including shareholders) to foster a constructive environment that may lead to continuous improvements in ESG disclosures. Originality/value – EU countries are opting for a mix of voluntary and mandatory measures that improve ESG disclosures in their respective jurisdictions. This contribution indicates that there is scope for national governments to give further guidance to civil society and corporate business to comply with the latest EU developments in ESG reporting. When European entities respond to regulatory pressures, they are also addressing ESG and economic deficits for the benefit of all stakeholders.

'Brexit' puts UK and EU climate policies in danger

2016 ◽  
Keyword(s):  
United Kingdom ◽  
Energy Costs ◽  
Green Tape ◽  
Content Type ◽  
Decision To Leave ◽  
Market Withdrawal ◽  
The United Kingdom ◽  
Climate Policies ◽  
Future Direction ◽  
The Eu

Subject Energy and climate policies post-Brexit. Significance The United Kingdom has been a significant player in the development of energy and climate policies within the EU and its decision to leave raises important questions about the future direction of these policies in both the United Kingdom and the Union. Impacts Single market withdrawal could see the United Kingdom lose up to 500 million euros (550 million dollars) per year in lower energy costs. Advocates of Brexit argue that savings as a result of no longer being bound by EU 'green tape' will outweigh the higher energy costs. The first test of diminished UK influence will be the Commission's proposals for promoting renewable energy released later this year.

Belarus economy in growth mode despite trade hitches

2019 ◽  
Keyword(s):  
Geographical Distribution ◽  
Petroleum Products ◽  
Retail Trade ◽  
Growth Mode ◽  
Gdp Growth ◽  
Industrial Park ◽  
Trade Disputes ◽  
Content Type ◽  
Trade Turnover ◽  
The Eu

Significance Last year's GDP growth of 3% was largely attributable to higher prices for refined petroleum products sold to the EU and to a lesser extent a recovery in demand for manufactured goods in Russia. Domestic factors also contributed as retail trade turnover increased alongside people's disposable incomes. Impacts Political tensions with Moscow will continue, often playing out through trade disputes. A more balanced geographical distribution of trade will make Belarus's negotiating position with Russia somewhat less weak. China is now a major investment force, with an industrial park project and a Geely car assembly plant. Belarus will continue borrowing on the eurobond market.

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