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Germany proposes to exclude China from carbon border tax


Germany wants the European Union to create a “climate club” with countries like the U.S., Japan and possibly even China to avoid trade friction linked to green tariffs such as a planned carbon border levy.

Chinese President Xi Jinping is shown holding a video conference with European and EU leaders in Brussels on Dec. 30. Germany has called on the EU to reach out to countries outside the bloc to avoid trade tensions over environmental taxes.  © Reuters

German Vice Chancellor and Finance Minister Olaf Scholz said on Saturday after talks with Portuguese Prime Minister Antonio Costa, the current holder of the EU’s rotating presidency, that Europe must engage with countries to agree joint rules and common standards on how to reduce carbon emissions.

Scholz said climate protection measures would have an impact on the competitiveness of German and European companies, especially those in energy-intensive sectors.

“And so it is a wise thing not just to discuss about how the European Union can do this and how we could avoid to have difficulties in the competition on the global market afterwards,” he said.

The EU should approach countries such as the United States, Canada, Britain, Japan and China to discuss and possibly agree on the same steps and principles.

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