CAN CANADA AND THE US AGREE ON A CARBON TARIFF?
ENERGY BAR ASSOCIATION, CANADIAN CHAPTER
June 22, 2021 (EDT)
Policy makers have long claimed that without carbon tariffs, meaningful reductions in carbon emissions will not take place because some countries will continue prioritize economic objectives over environmental ones. Recently the European Commission declared that carbon tariffs were essential:
“On 14 July 2021, the Commission adopted a proposal for a new Carbon Border Adjustment Mechanism which will put a carbon price on imports of a targeted selection of products so that ambitious climate action in Europe does not lead to ‘carbon leakage’. This will ensure that European emission reductions contribute to a global emissions decline, instead of pushing carbon-intensive production outside Europe. It also aims to encourage industry outside the EU and our international partners to take steps in the same direction.”
Canada and the United States share the longest undefended border in the world and are the two most highly integrated countries in terms of energy investment. Both countries are now closely aligned on carbon policy but will they be able to agree on this latest issue? The Canadian Chapter of the Energy Bar Association presents a challenging debate between experts from both counties.
Gordon E Kaiser
Counsel, First Canadian Chambers, Toronto
Partner, McMillan LLP, Toronto
Professor, Department of Economics, University of Toronto
Professor, Department of Agricultural and Resource Economics
University of California, Berkeley
Sanjay J. Mullick
Partner, Kirkland & Ellis LLP, Washington D.C.
Anna Fung QC
Deputy Chair, British Columbia Utilities Commission