Carbon border tax could transform world trade but raise prices

SourceThe National
CountryMiddle east

Carbon border taxes could transform world trade but the cost of the levies would lead to higher prices, the UK’s Centre for Economics and Business Research said.

While the EU and the US are in favour of CBTs – a levy on emissions attributed to imported goods that have not been carbon-taxed at source – the UK is largely supportive but is adopting a cautious approach as it fears the EU might use them as post-Brexit protection, the Cebr said.

“Should CBTs be introduced in the coming years, they look likely to transform the shape of world trade, especially when combined with reducing more...