Research On Legal System Of Carbon Tariff

Carbon tariff, an instrument to govern climate environment, is to reasonably generate ecological, economic and social effect on the condition that it is implemented fairly. However, unilateral and multilateral carbon tariff must be strictly distinguished due to their different functions. Unilateral carbon tariff has been unanimously condemned by developing countries because of its flagrant violation of WTO rules and UN Climate Convention, therefore, implementation of tariff will sure split cooperation on global climate governance, turning climate control measures into trade protectionism without helping to reduce global greenhouse gas emissions, and eventually becoming a barrier to the healthy development of the global economy. While multilateral carbon tariffs, which strictly observe the UNFCCC "common but differentiated responsibility principle", is conducive to the realization of global climate governance and trade development.Multilateral carbon tariff system was created in response to the global public management crisis on the consideration of maximizing public welfare and sustainable development for countries around the world, taking into account the environmental governance, economic development and social progress. It focuses on how to protect the developing countries and their citizen's equal right to development and carbon emissions so as to strengthen solidarity between developing and developed countries to jointly cope with global war against climate change more effectively.When it comes to the component elements of multilateral carbon tariff, obligation of mandatory emission reduction should first be incorporated into taxpayers' obligations in developed countries in accordance with the UNFCCC provisions, but be imposed on developing countries conditionally in phases.If refer to taxation scope, it's suggested to start from initial scope involving industries like metal smelting, rolling processing, non-metallic minerals mining, oil refining, chemical, electricity&heat production and supply of high-carbon to wider range in the future, on the condition that peoples' daily life shall not be effected. As to taxation criteria, quantity standard and neutral principle of taxation should be adopted. As far as design of tax rate is concerned, principle of Taxing on Capacity should be observed, while allows different region adopts differentiated fixed tax rate, showing necessary favor or privilege for developing countries by implementing categorized fixed rate in accordance with the industry sectors, nature of consumption product and different types of energy. Speaking of tax privilege, written stipulation on reduction or exemption of certain tax type for developing countries should be drafted for the final purpose of providing support and protection during their course of industrialization. Furthermore, a certain degree of relief in the tax rate, when necessary, is also suggested in order to promote stability and development of their economy and sociality.Levy of carbon tariff is rather a complicated process as it is based on the quantity of carbon emissions from objects, which also makes the collection and administration of multilateral carbon tariff different from the general tax, in other words, in addition to a general tax management system, other system like carbon labeling system and carbon emission quota distribution system, which is unique to carbon tariff systems, also needs to be established, possibility of finally implementing multilateral carbon tariff will largely rely on those system. An equitable distribution of carbon emission quotas directly affects not only a country's future development, also cooperation efforts on climate governance among countries. Standard for initial distribution of global carbon emissions to be based on the industrialized cumulative per capita emissions will get its fairness easily recognized internationally. The carbon labeling system is one of the most important system, establishment of a globally harmonized carbon labeling standards to quantify the carbon footprint of individual national products, will sure increase the consistency, transparency and reliability of information about greenhouse gas emissions. On the one hand, awareness in low-carbon economy among governments, enterprises and people can be strengthened through it, on the other hand, basic data collected about carbon tariffs will simplify the work of collecting multilateral carbon tariffs. Allocation and management of carbon tax revenue is also essential as it offers a "win-win situation" for all countries. As a new-type global public revenue, use of it must be limited to financial support for producing and maintenance of global public goods, focusing on improving developing countries'capability of energy saving and waste reduction, especially on technology for such energy saving and waste reduction. Therefore, setting up a special fund, which will be managed by a specialized agency, and incorporating it into the management system of the Global Environment Facility for effective use of this revenue, is absolutely necessary.The carbon tax system, a typical climate control instrument but closely linked with all kinds of economic behavior, was created to reduce greenhouse gas emissions. Multilateral carbon tariff is more involved in global climate governance and economic trade, thus producing a huge impact on individual countries'economy. However, various conflicts may inevitably appear from environment governance and economic trade upon implementation of multilateral carbon tariffs system, carbon labeling system or the carbon tax revenue management system, therefore, a coordinating body for multilateral carbon tariff needs to be established to implement, coordinate and supervise.Currently, the United Nations plays a leading role in the field of climate and environment governance, signing of many multilateral climate agreements and setting up of international climate organizations have been realized under the auspices of the United Nations. On the other hand, the WTO plays a major role in the field of international trade, trade rules and dispute settlement have been fulfilled within the framework of the WTO mechanism. However, incorporating the coordinating body for multilateral carbon tariff into the institutional framework of these two international organizations may not be a good idea because of their different functions and different concept about rules, thus resulting in worse coordination. Therefore, setting up a separate coordinating body for multilateral carbon tariffs, which features governance, coordination and resource integration during the implementation process, is strongly recommended. Meanwhile, a liaison agency is suggested to set up within the coordinating body especially for coordination with UN and WTO to make sure that multilateral carbon tariff shall be well organized and effectively implemented under a unified leadership.Further deterioration of the climate and environment has put the Kyoto Protocol emission reduction commitment in the tight spot, new instruments for climate environment governance maybe introduced and chosen. United States and countries in Europe will for sure take the opportunity to accelerate and promote unilateral carbon tariff system, which is extremely unfavorable to developing countries including China. Concept of low-carbon economy is not just about climate nowadays, it has more and more become an ethical even a political issue, therefore, given the situation, China should take positive action to promote the multilateral carbon tariff system so as to participate in the new global governance mechanism and expand our voice, as a responsible developing country, in drafting global governance rules, at the same time, China should speed up to establish and standardize carbon labeling system, accelerate the formulation and implementation of domestic carbon tax system, tangible emission reduction activities would definitely strengthen our role and gain favorable position in the new global economy of low carbon.