The head of the UN’s climate science panel has pleaded with the US Congress not to include carbon tariffs in the its climate change bill, currently before the Senate. He joins President Obama in warning against the dangers for trade and climate action in going down the tariff path.

Carbon tariffs are trade penalties levied on imports from countries with no restrictions on carbon emissions by nations that do have such curbs. The US Congress has added provisions for carbon tariffs into the Waxman-Markey climate change bill in order to protect trade-exposed American businesses that might lose out to importers that don’t face extra production costs from emissions laws.

Rajendra Pachauri, head of the Intergovernmental Panel on Climate Change (IPCC), says the specter of carbon tariffs is a dangerous development for the chances of negotiating international agreements on both climate and trade.

The tariffs are aimed at the likes of China and India, big and highly-competitive manufacturers in the global economy, currently rejecting pressure to place curbs on their greenhouse emissions.

“I'm afraid that those that have been pushing these provisions probably don't realise that all of this can cause a major negative reaction," Pachauri told Associated Press. "The United States has always stood for a free market system. Legislation to move away from that principle is clearly counterproductive."

The tariff provisions were introduced in the House of Representatives to appease members from manufacturing states. This contributed to the winning of a narrow majority for the bill in the House.

The inclusion of tariffs in the bill has already raised the ire of India and China, further entrenching the stalemate between the big developing world emitters on one hand and the US an developed nations on the other. The two sides can’t agree on how emissions reduction burdens should be shared under a future global climate treaty that is due to be finalised in Copenhagen in December. Pachauri says the tariff “weapon” will only reduce the chances of reaching an agreement.

The issue also complicates stalled talks to free up world trade, also divided along similar lines. There is some doubt that the US provisions are even legal under existing world trade rules.

Associated Press 23/7/09

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