Disguised Carbon Tariff: Concept and Its Governance

Abstract

Carbon tariff is a trade issue that is of great concern among the international community. The South and the North have big disputes on this issue because of the trade interests attached to it. Developing countries oppose to almost any policies and measures concerning carbon tariff. Hence, some countries seek alternative approaches to achieve similar effects of carbon tariff through more covert technical approaches, such as setting up production standards, carbon labeling, etc. This paper summarizes these covert approaches as "disguised carbon tariff", and defines them as policies and measures that can achieve similar effects as carbon tariff. These disguised carbon tariffs, although not levied at borders, impose the same restrictions on export products and services from developing countries. Disguised carbon tariff has diverse forms, existing in different regions, and has evolved into different new kinds. The governance of disguised carbon tariff requires reinforcing the leading position of the UNFCCC on the issue of carbon emission governance. Relevant international discussions on carbon emission issues should give high priority and respect to the principles in the UNFCCC, especially the "common but differentiated responsibilities" principle. Responsibilities and obligations between the developed and developing countries on tackling climate change should be treated differently. And an international cooperation model that is based on mutual trust between the South and the North should be established to achieve good environmental and climate governance.