Inside the negotiating rooms and on the sidelines of the COP28 climate talks, simmering tensions over wealthy countries’ “green trade” policies have been bubbling to the surface, with developing nations fearful they will be penalised.
A particularly sore point has been the European Union’s new carbon border tax, which sets a price on imported goods based on the emissions involved in creating them.
While the EU deems the tax necessary to ensure everything entering the bloc meet its climate goals, powerful emerging economies at COP28 have labelled such policies as protectionist, saying they disadvantage poorer trading partners.
Concerns have also been raised that these kind of climate policies may — even though they cut emissions from one country — make it harder for another nation to sell their goods or access clean energy technology.