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

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

What Healthcare Teams Look for When Choosing Specialist Surgical Supplies

In clinical environments, small details rarely stay small. A delayed instrument, a poorly matched device or inconsistent supply quality can affect theatre flow, staff confidence and patient outcomes. ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...