CAN Europe is a coalition of organisations fighting dangerous climate change. Its members include Greenpeace UK, Friends of the Earth, Campaign against Climate Change and WWF.

This, in conjunction with the other Citizens’ Climate Lobby groups in Europe, will strengthen our voice in Brussels in pushing for an effective price on carbon, which in our view is best achieved with a straightforward tax on carbon with the revenue returned to citizens. However, with the EU Emissions Trading Scheme being the main pillar of carbon pricing in Europe, and with the UK government saying that if we leave the EU with a deal they would adopt a domestic emissions trading system and link it to the EU ETS, the EU ETS is likely to continue to be important after Brexit (if Brexit happens).

An important recent development is BusinessEurope, Europe’s largest business lobby group, considering backing border carbon tariffs in order to restore a level playing field with countries like China and the US which aren’t pricing carbon, an idea put forward by Emmanuel Macron a year ago and something we in Citizens’ Climate Lobby have long campaigned for, and something that many others are now calling for.

Europe should lead the way in imposing a border tax on any goods coming from a country that has not imposed, either through taxes or regulations, an adequate price on carbon. If Europe takes a tough approach, it can eliminate the incentive for the United States to gain a competitive advantage on others by polluting the world.

Joseph E. Stiglitz, Chief Economist and Senior Fellow, Roosevelt Institute & Nobel Economics Laureate