WEEKEND READ: Carbon neutral borders

Europeans are worried that being first to cut carbon emissions gives them a competitive disadvantage. But does that mean they need tariffs and subsidies based on the carbon content of products?

The European Union is leading the effort to tackle climate change. The European Commission has committed to cutting carbon emissions by 20 per cent by 2020 and by 30 per cent if other regions match their commitment. European business, however, is worried that leading on climate change means lagging on competitiveness, unless other nations follow suit.

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