This is a Feature, Not a Bug

This time, it is a feature not a bug in a GOOD way.

Specifically, India is complaining that the EU will a carbon tax that will be implemented on both internal production and imports.

The Indian government, no doubt hoping to benefit from companies fleeing carbon taxes or cap and trade moving production to the South Asian nation, is not happy about this.

Given that production in what are euphemistically called, "Low Cost Countries," are typically less efficient, because they benefit from low wages, and so typically produce more CO2 for a unit of production.

The counter-argument from New Delhi is that they should get a pass, because their country is poorer than Europe, and need this for their development.

This argument is complete pants.

Creating new development in a carbon responsible manner is far less expensive than modifying existing equipment, and countries like India are least equipped to handle the consequences of anthropogenic climate change.

The issue for the EU is not just carbon emissions, it is carbon footprint, which includes a net of imports minus exports:

Last week, Indian environment minister Prakash Javadekar opposed the European Union's (EU) plan to levy an additional 'carbon border tax' on imports from countries such as India that do not have strict norms for controlling industrial greenhouse gas (GHG) emissions.

Earlier, on March 10, 2021, the EU Parliament had adopted a resolution to implement a 'Carbon Border Adjusted Mechanism' (CBAM), a June 2021 draft regulation pertaining to which proposed that goods entering the EU would be taxed at the borders. Such a tax would promote "low-carbon, resource-efficient manufacturing", the resolution says. The UK and the US are also considering such proposals.

The BASIC (Brazil, South Africa, India and China) countries' grouping had opposed the EU's proposal in a joint-statement in April, terming it "discriminatory" and against the principles of equity and 'common but differentiated responsibilities and respective capabilities' (CBDR-RC). These principles acknowledge that richer countries have a responsibility of providing financial and technological assistance to developing and vulnerable countries to fight climate change.

The BASIC nations response draws from the Martin Scorsese film Goodfellahs quote, "F%$# you, pay me." 

This argument endangers the whole world, and should be ignored.

Why does the EU want a carbon tax?

For two reasons: its environmental goals and its industries' global competitiveness, experts tell us.

Recently, the EU declared it would cut its carbon emissions by at least 55% by 2030 compared to 1990 levels. EU's greenhouse gas emissions have fallen by 24% compared to 1990 levels.

But imports from emissions--which contribute 20% of the EU's carbon dioxide emissions--are increasing, the resolution said. Such a carbon tax would incentivise other countries to reduce GHG emissions and further shrink the EU's carbon footprint.

Second, the 27 EU member states have much stricter laws to control GHG emissions. It has an 'Emissions Trading System' that caps how much GHG individual industrial units can emit; those that fail to cap their emissions can buy 'allowances' from those who have made deeper cuts.

Yeah, cap and trade, an invitation to fraud and manipulation, but better than nothing.

For what it's worth, there is already a tax that works this way, the value added tax, which is assessed in a country at each stage of production, refunded on export, and charged on import, and it works just fine.

I get that this would reduce the subsidy granted to Indian, and other low cost country, industries, but we are talking real end of the world sh%$ here.

No one's economic development should be allowed to literally destroy the world.