EU LABOR BACKS CARBON IMPORT TARIFF

Climate change is going to affect more than the environment. As energy changes, jobs must shift. Already, the EU is looking at losing half of coal industry jobs and 20% of electricity industry jobs. But it will gain jobs in the wind, solar and wave energy industries, in energy efficiency work and in building retrofitting trades.

A proposal is before the European Commission (EC) of the European Union (EU) to charge a “carbon tariff” for goods imported into EU nations from nations where the cost of emissions is not part of the goods' prices. The EU cap-and-trade system makes EU-manufactured emissions-generating goods more costly. The tariff would theoretically level the playing field. Theoretically. The EC must decide what the economic impact of the tariff will be.

That could be tough. Some say a one-handed economist would be helpless because economics only concludes that “on the one hand, the market could go up while, on the other hand, it could go down…”

The trade unions are certain the tariff would save jobs. On the other hand…

NewEnergyNews calls it emissions rendition when a country imports cheap goods from a country that keeps the goods cheap by using cheap but emissions-intensive energy sources.

EU Workers Want Imports From Carbon Polluters Taxed
Aoife White, January 15, 2008 (AP via Advantage Business Media)

WHO
The European Trade Union Confederation; the European Commission (EC) of the European Union (EU); the World Trade Organization [WTO]

WHAT
The EU trade union group backs the import tariff on emission-intensive goods.

This Tyndall Centre study showed that many developed nations outsource their emissions-intensive manufacturing to China and then blame China for generating emissions. (click to enlarge)

WHEN
The EC will announce final decisions on rules proposals for the next phase of the EU’s climate change fight during the week of January 21.

WHERE
EU heavy industry is migrating to Ukraine, Russia and Turkey, nations that are doing nothing to control emissions and therefore can produce goods more cheaply.

WHY
- The tariff would make goods manufactured in EU nations competitive with cheaper goods manufactured in developing nations that do not charge manufacturers for emissions. The unions claim it would both strengthen anti-climate change, emissions-reducing measures and save EU manufacturing jobs.
- The trade unions claim 50,000 of the EU’s 350,000 steel industry jobs arein danger of being lost in spite of the fact that the steel companies operate the most efficient plants in the world, generating 10% of the emissions of Chinese steel plants.
- The trade unions are also calling for qualifications about worker-treatment on biofuels imports.
- The tariff might bring the EU into legal conflict with the WTO

Power generation in the industrial sector is a major contributor to emissions. The cost of the goods manufactured needs to reflect that. (click to enlarge)

QUOTES
- John Monks, general secretary, European Trade Union Confederation: ''What we don't want is for companies to fire people in Europe and relocate to cheaper, dirtier locations…The EU is a third of the world economy, bigger than the U.S…If it sets the standard in this area as in others and puts pressure on others, this can be the world standard.''
- European Trade Union Confederation: '' [A carbon tax] would equalize carbon costs for companies outside Europe and in Europe…''