EU ministers shun French carbon tariff proposal

European ministers rallied on Friday against a French proposal to introduce so-called carbon tariffs on non-EU nations that fail to agree on a new global deal on climate change.

Germany's Secretary of State for Environment Matthias Machnig is pictured in 2006. Germany hit out Friday at French proposals for a carbon border tax on non-EU countries which do not agree on a new global deal on climate change as "a new form of eco-imperialism."

France was a vocal supporter of carbon tariffs during negotiations on the EU's climate package and Paris insisted Friday they remain a plausible option if no deal is struck at December's UN climate talks in Copenhagen, Denmark.

Swedish Environment Minister Andreas Carlgren, whose country currently holds the rotating EU presidency, called on delegates at a meeting in Aare, central Sweden to reject any such measures.

"The threat of taxes to harm developing countries would seriously make negotiations more difficult," he said, referring to the talks in the Danish capital.

German State Secretary for Environment Matthias Machnig echoed the views of the Swedish presidency, describing carbon tariffs as "a new form of eco-imperialism" that would send out the wrong message.

"The signal would be, and that is what some of the developing countries always fear ... that we are closing our markets to their products," Machnig said.

Machnig said he was confident that a deal would be agreed in Copenhagen this December, but acknowledged "it's a question of political willingness."

Some rich countries say tariffs are necessary as they could dissuade polluting industries from shifting operations overseas to places with less stringent environmental controls.

But countries such as China and India reject that view.

They argue carbon tariffs are merely a pretext for protectionism that risk seriously harming their economies in the midst of a global economic recession.

France, however, argues that the carbon tariffs could be a viable alternative if the international community fails to reach an agreement on climate change.

French Environment Minister Jean-Louis Borloo told AFP that it was important to have an alternative plan in the event of the climate talks breaking down.

"We have to have something in place if there is a need," Borloo said.

"It's a measure that perhaps will be necessary ... the Americans have introduced (something similar) without any fuss," he added.

A climate change bill passed by the US House of Representatives last month could allow import taxes on products made in countries that do not have statutory curbs on greenhouse gas emissions.

"The World Trade Organisation has just said that it was completely within the rules," France's Borloo said, referring to the US bill.

Earlier Nicholas Stern, a climate change expert and economist from the London School of Economics, cautioned against using carbon tariffs, reminding delegates that the continued growth of emerging economies was also important to eliminate poverty.

"Let's not get seduced into green protectionism," Stern said in a presentation to ministers.

The tariffs differ from national methods used by countries such as Sweden, which taxes carbon emissions to reduce greenhouse gas.

Sweden introduced such a national tax on carbon dioxide as far back as 1990, deeming it an inexpensive way of helping the environment without resorting to costly new infrastructure and technology.

It is under the Swedish presidency that the EU will finalise its joint position for Copenhagen.

The goal is to forge a global deal to tackle global warming after the existing Kyoto Protocol expires in 2012.

EU nations in 2007 committed to reducing greenhouse gas emissions by 20 percent by 2020, compared to their 1990 levels.