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Why the EU's proposed carbon border levy is an important test for global action on climate change

In the more than two decades since the Kyoto Protocol was adopted, national policies on climate change have had dangerously and disappointingly little effect on global emissions.
Within the current economic system, perhaps the most ambitious attempt to reduce emissions has been the EU’s emissions trading system (or ETS). In operation since 2005, the ETS covers more than 11,000 heavy-energy-using power stations, factories and airlines, representing around 40% of the EU’s greenhouse gas emissions. The scheme operates via a cap-and-trade principle where an EU-wide cap on emissions means that firms must buy allowances, essentially paying for their polluting activities.
Yet although the ETS has had some success in reducing emissions, finance professor Panayiotis Andreou and I recently showed that the scheme is under-penalising those who pollute the most – primarily because the price of allowances has typically been too low.

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Crisis as Freedom: Muhammad Iqbal and Walter Benjamin - Los Angeles Review of Books

Crisis as Freedom: Muhammad Iqbal and Walter Benjamin
AS WE ENTER THE winter amid the pandemic, it feels as though there is no end to the crises that engulf us. The structural subjugation of Black and brown peoples, what prison abolitionist Ruth Wilson Gilmore has called “the state-sanctioned or extralegal production and exploitation of group-differentiated vulnerability to premature death,” has been laid bare in its full nakedness for all to see. Of course, for Black and Indigenous peoples and other oppressed groups, this “‘state of emergency’ in which we live,” as Walter Benjamin once wrote, “is not the exception but the rule.” To compound the problem further, the political class and elite intelligentsia continue to propose the same neoliberal, market-based reforms that birthed our state of affairs in the first place. Our cultural moment is best captured in Antonio Gramsci’s notion of an

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EU carbon border levy shaping up as 'notional ETS'

Revenues from the European Union’s upcoming carbon border charge will be “recycled” to replenish the EU budget and finance the bloc’s green transition, senior officials have said. However, this won’t be the main goal, they cautioned, saying the new levy must pursue environmental objectives to comply with WTO rules.

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