We need urgent global talks on the EU’s carbon adjustment import charges

News Snapshot:

The idea was simple: To meet progressively higher carbon emission-reduction targets in line with its climate-action commitments under the Paris Agreement and the UN Framework Convention on Climate Change (UNFCCC), the EU needed to impose higher obligations on its own industrial activities in carbon-intensive sectors. As a result, it had to tackle two challenges. One, it had to safeguard the competitiveness of its domestic industry amid cheaper imports from countries where emission reductions or the carbon price for emissions are lower because of differing reduction obligations; and two, it had to prevent carbon leakage through the relocation of its own...