The European Union’s plan to impose a tax on the carbon pollution emitted to make goods imported from countries like India and China has sparked a debate at the United Nations climate conference in Dubai, as poorer countries argue that the tax will harm livelihoods and economic growth.
Known as the Carbon Border Adjustment Mechanism, the tax wants to set a price on the carbon emitted to make energy-intensive products like iron, steel, cement, fertilizers and aluminum in non-EU countries. The EU says this creates a level-playing field for domestically-manufactured goods that have to adhere to stricter green standards and also reduces emissions from imports. But other nations, particularly developing countries, are worried this would harm their economies and make it too expensive to trade with the bloc.
