Carbon tariffs cause retaliation. They halt international progress on climate change, turning the case.
Carolyn Fischer et al. 22, Professor of Spatial Economics at the Vrije Universiteit Amsterdam. Christoph Böhringer is a Professor of Business Administration, Economics, and Law at the Carl von Ossietzky University of Oldenburg. Knut Einar Rosendahl is a Professor at the School of Economics and Business at the Norwegian University of Life Sciences. Thomas Fox Rutherford is a professor at the University of Wisconsin-Madison. "Potential impacts and challenges of border carbon adjustments," 01/03/2022, https://www.nature.com/articles/s41558-021-01250-z
From a legal perspective, import charges in WTO-compatible BCAs may not be sufficient to bring many pollution-intensive countries into a carbon-pricing coalition51,78. Moreover, the use of BCA as leverage for country-specific actions, as opposed to leakage prevention, could violate common but differentiated responsibilities principles. In international climate negotiations, BCAs could lead countries to reduce their voluntary commitments under the Paris Agreement, which would undermine the strategic value of BCA as a sanctioning instrument. China, as a prime example, responded to the EU’s proposal for import adjustments by saying such a policy would seriously undermine international efforts to fight global warming; other large non-OECD countries, such as India, Indonesia and Thailand, share the view that BCA is a protectionist and discriminatory policy measure that they will oppose81.