Biden-backed Carbon Border Tax Faces Fight from Developing World

(Bloomberg) -- India and other developing nations will oppose plans by the European Union and the U.S. to penalize imports of carbon-intensive goods to curb emissions at the global climate summit to be held in Glasgow this November.

“It is the most regressive proposal” with “no principle of equity adhered to,” Environment Minister Prakash Javadekar told Bloomberg New Energy Finance’s Vandana Gombar at the BNEF Summit held virtually on Tuesday. “This is unfair taxation, nobody will accept it.”

India will instead seek more action from European nations and the U.S., which have not kept their commitments on reducing emissions, Javadekar said. U.S. President Joe Biden’s administration is considering a so-called border adjustment tariff to be levied on certain carbon-intensive goods imported from countries with lax climate controls. That’s similar to plans put forth by the EU and those being discussed by the U.K. and Canada.

Javadekar listed India’s climate investments, including its solar power plans and 400 billion rupees ($5.9 billion) spending on increasing forest cover. The minister also criticized delays in plans to release the $100 billion in financial aid to developing nations to help them meet their climate goals. The funds that were supposed to be disbursed by 2020 have now been delayed to 2025.

India would push for more action from developed nations at the Conference of Parties or COP26 in November, Javadekar said. “We are paying, we are suffering from climate change which was caused by the reckless emissions for hundreds of years by the developed world,” Javadekar said.

© 2021 Bloomberg L.P.

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