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Border Tax on Emissions Would Hasten Nations’ Carbon Pricing Schemes

October 21, 2016
Reading time: 2 minutes

digifly840 / Pixabay

digifly840 / Pixabay

digifly840 / Pixabay
digifly840 / Pixabay

Major trading countries could speed up the introduction of effective carbon pricing by imposing a border tax on emissions from imported goods that aren’t already taxed in their countries of origin, according to economist and former New Zealand cabinet minister Peter Neilson.

The scheme would reverse one of the tougher challenges with carbon pricing—that countries or regions that fail to act on climate change gain a competitive advantage over jurisdictions that move faster. With a border tax system, “all countries would then be encouraged to start pricing climate-changing carbon emissions in their products, in order to protect their traders,” Climate News Network reports.

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Neilson, who played a central role in setting up New Zealand’s emissions trading scheme in 2008, now sees a border tax as the kind of urgent response that would help tackle climate change before time runs out. “For a global agreement to cap and then reduce emissions to work, almost every country needs to agree to take responsibility for a share of the globally reducing cap and live with the consequences of eventually lowering its own domestic emissions level, or paying someone else to reduce theirs,” he said. The process should begin with the biggest countries, since “we need a new starter agreement with the potential to grow into a global agreement.”

He cited border price adjustment as a standard international trade tool that “holds out the prospect of a practical solution to the problems that have bedevilled climate change negotiations to date.”

Earlier this month, Ilana Solomon, director of the Sierra Club’s responsible trade program, called for closer alignment between the Paris Agreement and international trade deals like the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership.

“We need to engage in a serious conversation about how to transform our trade policy so that it supports—not undermines—climate policy,” she wrote. “This could include, for example, writing into trade agreements rules that prevent challenges to climate policies,” and “mandating that countries put in place and implement the policies necessary to fulfill their Paris climate commitments.”







in Carbon Pricing

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Book Review: Prospectus for Carney’s Investment Summit Contains Legit Projects, Major Landmines, Epic Head-Scratchers

by Mitchell Beer
September 14, 2026

…

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Border Tax on Emissions Would Hasten Nations’ Carbon Pricing Schemes

October 21, 2016
Reading time: 2 minutes

digifly840 / Pixabay

digifly840 / Pixabay

digifly840 / Pixabay
digifly840 / Pixabay

Major trading countries could speed up the introduction of effective carbon pricing by imposing a border tax on emissions from imported goods that aren’t already taxed in their countries of origin, according to economist and former New Zealand cabinet minister Peter Neilson.

The scheme would reverse one of the tougher challenges with carbon pricing—that countries or regions that fail to act on climate change gain a competitive advantage over jurisdictions that move faster. With a border tax system, “all countries would then be encouraged to start pricing climate-changing carbon emissions in their products, in order to protect their traders,” Climate News Network reports.

Get the latest climate news and analysis, direct to your inbox.

Subscribe Today

View our latest digests

Neilson, who played a central role in setting up New Zealand’s emissions trading scheme in 2008, now sees a border tax as the kind of urgent response that would help tackle climate change before time runs out. “For a global agreement to cap and then reduce emissions to work, almost every country needs to agree to take responsibility for a share of the globally reducing cap and live with the consequences of eventually lowering its own domestic emissions level, or paying someone else to reduce theirs,” he said. The process should begin with the biggest countries, since “we need a new starter agreement with the potential to grow into a global agreement.”

He cited border price adjustment as a standard international trade tool that “holds out the prospect of a practical solution to the problems that have bedevilled climate change negotiations to date.”

Earlier this month, Ilana Solomon, director of the Sierra Club’s responsible trade program, called for closer alignment between the Paris Agreement and international trade deals like the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership.

“We need to engage in a serious conversation about how to transform our trade policy so that it supports—not undermines—climate policy,” she wrote. “This could include, for example, writing into trade agreements rules that prevent challenges to climate policies,” and “mandating that countries put in place and implement the policies necessary to fulfill their Paris climate commitments.”







in Carbon Pricing

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

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September 11, 2026
2.8k
Bank of England/flickr

250 Elite Investors, 167 Pitches: Some Clean Economy Projects Make the Cut as Canada Investment Summit Convenes in Toronto

September 11, 2026
1.4k
Alberta Premier Danielle Smith and Minister of Technology and Innovation Nate Glubish introduced, at a news conference in Edmonton on December 4, 2024, the province’s new data strategy. (photography by Chris Schwarz/Government of Alberta)

Smith Tells Albertans to ‘Lock In’ Power Prices Before Meta Data Centre Joins Grid

September 1, 2026
42.4k

Book Review: Prospectus for Carney’s Investment Summit Contains Legit Projects, Major Landmines, Epic Head-Scratchers

by Mitchell Beer
September 14, 2026

…

Follow Us

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