
Nobel award winning economist Joseph Stiglitz has raised the prospect of a global carbon tax lead by a 'coalition of the willing', with cross border taxes on goods from non-participating countries, as one strong measure to transition the planet to low emissions and fight climate change.
Speaking at the plenary of the
Our Common Future Conference on climate science in Paris on Friday he outlined that carbon trading and the national voluntary target approach through the UNFCCC process, like we are seeing in current COP21 negotiations, have essentially failed. According to
projections by Climate Action Tracker, we are still on track for 3 to 4 degrees Celsius of warming this century, overshooting the 2 degree level that was decided upon at Cancun in 2010.
Instead he argues for a global carbon price with the facility to tax or place tariffs on carbon intensive production or products at national borders as essential to discourage countries that do not have national carbon taxes or capped carbon trading or emissions reduction schemes. He thinks that such tariffs would not breach current World Trade Organisation rules on restriction of trade.
"In fact it changes the incentives, because it provides [countries] incentives to join the agreement. If they don't, effectively carbon taxes are being collected by trading partners. Their trading partners get to collect the revenue from the carbon tax and that provides them with an incentive to go on. I actually think that stronger measures should be undertaken, but this is something that can be done within the current framework." he said.