MANDELSON CALLS FOR WORK ON CLIMATE, TRADE LINKS

Speaking in Beijing, China on 10 November, EU Trade Commissioner Peter Mandelson called for analytical work on trade policy and climate change. Noting that economic growth and trade can act as drivers of climate change, he said they can - and should - also be part of the solution to global warming.

Mandelson's trip to China took place as delegates at a global meeting on climate change gathered in Nairobi, Kenya, to discuss future commitments under the climate regime. They also discussed funding for adaptation activities in developing countries (see Bridges Trade BioRes, 3 November 2006, http://www.ictsd.org/biores/06-11-03/story1.htm). This meeting is set to close on 17 November.

Mandelson at his "first ever" discussion on trade and climate

Speaking at a seminar on trade and climate change at the China Institute for International Studies, Mandelson stressed the need for China to balance continued economic growth with environmental concerns. While acknowledging the need for industrialised countries to take the lead in combating climate change, he said rapidly growing developing countries like China will also be central to any solutions.

On trade and climate change, he posed key questions, including: "Are the rules of WTO up to date? Do we need to change them, for example by allowing lower tariffs for products produced in a climate friendly way. Or on products which are very energy efficient? Are our regimes for agricultural subsidies in tune with the potential role that alternative biofuels can play in reducing emissions and absorbing green house gases?"

Mandelson went on to announce that a new Chinese-European task force on sustainable trade would be set up to deal with these issues.

De Villepin calls for carbon tax on goods from polluters

Also during the Nairobi meeting on climate change, French Prime Minister Dominique de Villepin made a controversial proposal on placing a carbon tax on imports from countries that do not sign onto emissions reduction targets during the post-Kyoto commitment period after 2012. Speaking at a separate meeting on sustainable development, he said "We have decided to reinforce the principle that the polluter pays." Mr. de Villepin added that he would work out further details for this proposal over the coming months and present it at the European level. Members of the European Parliament have previously issued similar calls for border-tax adjustments (see Bridges Trade BioRes, 18 March 2005, http://www.ictsd.org/biores/05-03-18/inbrief.htm#3).

De Villepin's ideas were rejected by major countries that could be the targets of such taxes, including the US and Canada.

The two-week meeting of the twelfth conference of the parties (COP-12) to the UN Framework Convention on Climate Change (UNFCCC) and the second meeting of the parties (MOP-2) to its Kyoto Protocol has attracted close to 6000 people. In addition to the negotiations themselves, participants attended numerous side events showcasing ongoing work and ideas for combating climate change from around the world.

The next issue of Bridges Trade BioRes will provide reporting and analysis on the UN Climate Change Conference in Nairobi.

For a full report of the COP-12 and MOP-2, including daily updates, see IISD Linkages at http://www.iisd.ca/climate/cop12/

ICTSD reporting; "Democrats to Bush: Greenhouse Gas Limits Needed," REUTERS, 16 November 2006; "Technical gains but no political breakthrough at climate talks," AFP, 14 November 2006; "Call for post-Kyoto climate deal," BBC, 14 November 2006; "Kenya: Delegates Differ Over Review of Kyoto Protocol," EAST AFRICAN STANDARD, 13 November 2006; "Climate change: Talks on post-2012 Kyoto format hit political snag," AFP, 16 November 2006; "French PM wants to hit Canada with carbon tax," GLOBE AND MAIL, 15 November 2005; "French PM calls for European carbon levy," FINANCIAL TIMES, 13 November 2006.