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WTO to establish task force for global carbon pricing, promoting fairness and sustainability.

WTO Launches Task Force to Determine Global Carbon Prices

WTO tackles fair carbon pricing

The World Trade Organization (WTO) is taking action to establish a task force that will develop a methodology to determine global carbon prices. This move aims to prevent developing countries from being unfairly penalized by import taxes based on carbon emissions. Ngozi Okonjo-Iweala, the director-general of the WTO, announced this initiative on Tuesday.

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Supporting developing countries

Okonjo-Iweala emphasized the importance of a global carbon price in enabling developing countries to remain competitive as Europe implements import taxes based on the CO2 emissions of specific goods. The establishment of a methodology will ensure that developing nations can participate effectively, as some lack the necessary tools to determine the carbon price of their exports.

Creating a unified approach

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Okonjo-Iweala expressed the need for a methodology that can be universally accepted, stating, “What we’re trying to do actually is to say, can we develop a methodology for global carbon price that everybody can sign on to?” She proposed the formation of a multilateral task force during recent IMF-World Bank meetings, and all finance ministers have agreed to support this initiative.

Protecting Africa’s interests

Okonjo-Iweala highlighted the significance of avoiding penalties for African countries, which historically contribute only 3% of global emissions. As Europe transitions to a low-carbon future, it is crucial to safeguard the interests of African nations.

Ensuring compliance with WTO rules

The European Commission maintains that the border levy aligns with WTO regulations. Okonjo-Iweala clarified that pursuing a net-zero goal is permissible under WTO rules, provided it does not hinder fair competition.

By establishing a task force and developing a global methodology for carbon pricing, the WTO aims to address the concerns of developing countries while promoting a fair and unified approach to combat climate change.

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