Read The Times Australia

Daily Bulletin

No point complaining about it, Australia will face carbon levies unless it changes course

  • Written by: John Quiggin, Professor, School of Economics, The University of Queensland

Reports that Britain’s prime minister Boris Johnson is considering calling for carbon border levies at the G7 summit to be held in London in June have produced a predictable reaction from the Australian government.

The levies would impose tariffs on carbon-intensive goods from countries such as Australia that haven’t adopted a carbon price or a 2050 net-zero emissions target.

Appearing to be shocked by the news, Energy Minister Angus Taylor declared that Australia is “dead against” carbon tariffs.

They were a “new form of protectionism designed to shield local industries from free trade”.

In fact they are already the policy of the European Union and the US, where President Joe Biden calls them a “carbon adjustment fee against countries that are failing to meet their climate and environmental obligations”. Canada, which has an economy-wide price on carbon, isn’t worried.

Saying you’re dead against something doesn’t stop it, and nor does asserting that it is anti free trade, when it is just as arguable that it is pro fair trade because it denies exporters from countries that aren’t taking action against climate change an unfair advantage.

Australia not the primary target

The mining industry itself made this point during the Gillard government’s introduction of Australia’s short-lived carbon price.

It would leave Australian exporters at a “disadvantage compared with international competitors”.

Australia isn’t the primary target in any event. The main aim of carbon tariffs would be to encourage China’s leader Xi Jinping to shift his country’s zero emissions date from 2060 to 2050, benefiting the rest of the world.

Read more: Vital Signs: a global carbon price could soon be a reality – Australia should prepare

If Xi Jinping does it, he’ll be on a level playing field with much of the world, although not with Australia, whose fate, like that of Britain’s Admiral Byng in 1757 would be used “to encourage the others”.

Complaining won’t much help. The International Monetary Fund has endorsed the idea, saying

in the absence of an agreement on carbon pricing – which would be by far preferable – applying the same carbon prices on the same products irrespective of where they are produced could help avoid shifting emissions out of the EU to countries with different standards

The World Trade Organisation, which has in the past has pushed back against environmental considerations in trade, is neutered.

World Trade Organisation powerless

In the late 1990s the WTO struck down a range of environmental restrictions imposed by the United States that required imported tuna to be labelled “dolphin safe” and required shrimp catchers to take action to protect turtles.

These decisions proved disastrous for the WTO, producing bitter hostility from the environmental movement and contributing to mass protests at the 1999 WTO meeting, which became known as the Battle of Seattle and ultimately killed the Doha round of trade negotiations.

Right now the WTO is in the organisational equivalent of an induced coma. By refusing to fill vacancies as they arose, the Trump Administration denied its appellate panel a quorum, forcing it to stop hearing cases.

No point complaining about it, Australia will face carbon levies unless it changes course President Donald Trump, neutered the World Trade Organisation. AP

The result is that any appeal to the WTO against carbon border tariffs would be left in limbo. US President Joe Biden has agreed to the appointment of a new WTO director general, stalled by Trump, but is in no hurry to re-establish the appellate body.

Instead, he will first try to refashion the WTO into an organisation that supports his own policies, among them stronger environmental measures, carbon tariffs and “Buy American” provisions. When reformed, the appellate body will give complaints from Australia’s government short shrift.

Prime Minister Scott Morrison has shown some signs of recognising these realities, making baby steps towards announcing a 2050 zero emissions target.

But time is short. Morrison will have to either face down the denialists and do-nothingists on his own side of politics, or set himself, and Australia, up for a series of humiliations on the international stage, with real and damaging consequences.

Authors: John Quiggin, Professor, School of Economics, The University of Queensland

Read more https://theconversation.com/no-point-complaining-about-it-australia-will-face-carbon-levies-unless-it-changes-course-155200

Business News

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Get a Document Notarised in Sydney: What to Bring, What It Costs and How Long It Takes

If an overseas bank, embassy, university, employer or land registry has asked you for a notarised ...

The 2026 Used-Car Market

For a few strange years, the used-car market rewrote its own rules. Supply shortages sent second-h...

Why CCTV Alone Is Not Enough for Modern Business Security

Cameras are usually the initial step that companies take to strengthen their physical security. If...

Why Every Workplace Should Take Emergency Preparedness Seriously

Emergency planning is one of those things many workplaces know they should think about, but it oft...

Why Clearer Communication Still Matters in a Digital-First Business

It’s never been easier for businesses to communicate, but that doesn’t mean they’re always communica...

What Happens After You Lodge a BYDA Enquiry? The Step Most Excavation Projects Miss

Every excavation project in Australia — from a backyard deck footing to a multi-storey commercial bu...

How to Choose the Right Dentist on the Gold Coast

Finding a dentist you trust is one of those decisions that quietly affects your health for years, ye...

The Hidden Engineering Problem Inside Australia's Older Housing Stock

A significant share of Australian homes were built for a way of living that no longer exists. Houses...

DIY Rodent Control Vs Professional Help: When Is It Time To Call The Experts?

Rodents are one of the most frustrating pest problems for Australian property owners. Rats and mic...