As world leaders and environmental experts converge in Baku for COP29, the urgent call for decisive climate action is louder than ever. The global community is rallying to tackle the escalating climate crisis with collective and robust measures.
However, a concerning trend known as green protectionism is emerging, posing a significant threat to these green ambitions. Disguised as green development, green protectionist measures are hindering the global greening process and disrupting the multilateral trading system.
Green protectionism impedes progress by imposing heavy tariffs on the import of competitive green products like electric vehicles (EVs) and photovoltaic power stations. While these technologies hold the promise of substantial mitigation efforts, protectionist policies delay their widespread adoption, slowing down the achievement of crucial climate goals.
Additionally, subsidies for domestic green industries in developed nations widen the gap between them and developing economies. Many developing countries, lacking the financial resources for similar subsidies, struggle to support their own green sectors, especially when developed nations have yet to fulfill their commitment of providing $100 billion annually in climate finance.
These protectionist measures are counterproductive even for the implementing countries. High tariffs increase the cost of green transitions for consumers and reduce the availability of green products and services in the domestic market. This not only dampens the demand for sustainable alternatives but also stifles technological innovation by limiting competition.
Moreover, green protectionism violates World Trade Organization (WTO) rules and challenges the principles of a free and open multilateral trading system. For instance, the U.S. Inflation Reduction Act offers subsidies and tax credits to American green sectors, breaching the national treatment principle that mandates equal treatment for imported and locally-produced goods. Similarly, the EU's proposed border carbon tax infringes upon the most-favored-nation principle, resulting in trade discrimination against other countries, particularly those in the developing world.
These actions risk sparking trade wars and disrupting the international cooperation essential for global green development. To achieve a sustainable future, it is imperative that nations work together, avoiding protectionist policies that hinder collective climate efforts.
Reference(s):
cgtn.com
