Navigating WTO Rules in the Context of Carbon Taxes

This chapter delves into the complex intersection of WTO rules and policies with the implementation of carbon taxes for climate change mitigation. It explores the challenges of balancing market access commitments with the need for carbon taxation, including discussions on carbon leakage and tariff adjustments. The dialogue also covers controversial proposals like Carbon Border Adjustment Mechanisms and a climate club, examining their potential impact on global trade dynamics within the framework of WTO regulations.