EU carbon tax to hurt global trade, not to stop carbon leakage: GTRI

News Snapshot:

The European Union’s (EU) proposal to put a carbon tax on certain industries such as metals beginning in 2026 will harm global commerce rather than help to reduce carbon emissions, according to the think tank GTRI on Sunday. According to the Global Trade Research Initiative (GTRI), European Commissioner Wopke Hoekstra stated that the main purpose of CBAM (Carbon Border Adjustment Mechanism) is to limit carbon leakage, which has serious problems. It went on to say that fossil fuels account for 90% of greenhouse gas emissions and 75% of carbon emissions, and that if decarbonisation is the goal, the EU should...