Page 14 - Zenith 2023-웹용

Zenith 2023 ↘ 2) Global Issues 14
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ESG

Interactions between Climate Change

Response and Trade Policy: A Border

Carbon Tax ESG

Climate change is a global problem and, of course, addressing climate change
is recognized as an urgent task for us. In a situation where global warming is
becoming serious, international trade policy is recognized as a tool that can play
an essential role in mitigating climate change. The border carbon tax is a trade
policy related to climate change response and is an example of the interaction
between the climate change response and trade policy. A border Carbon tax is
a trade policy that imposes a price on goods based on their carbon emissions.
The purpose of the border carbon tax is to pursue both economic activity and
carbon emission reduction. By imposing higher taxes on carbon-emitting goods,
economic gaps can be narrowed and carbon emissions can be reduced. Through this, environmental
protection and climate change response can be reflected in trade policy.

However, the introduction of these carbon border taxes also has a negative effect. First, from an economic
point of view, a carbon border tax can increase the price of the product or reduce its competitiveness. A
carbon border tax imposes additional taxes or tariffs on products with high carbon emissions. This can
lead to an increase in the price of the product and put an economic burden on companies. In addition,
economically weak countries or industries may find it difficult to bear this burden. A carbon border tax could
also make products from industries or countries with high carbon emissions more expensive, making them
less competitive. This can weaken competitiveness in the market and lead to trade imbalance between
countries. Beyond that, there are technical challenges to accurately measuring carbon emissions and
imposing tariffs.

ESG

ESG