But this will cost money. The feeble first phase of the emissions-trading scheme has raised domestic electricity prices by around 3-5% on average across the EU, and by rather more for industrial customers. If it starts to bite, then prices will rise further.
Higher costs for European companies will have two effects. They will increase conflict between the Commission, which sees combating climate change as its main aim at the moment, and member states. And it will raise calls for protectionism. That's happening already. Jacques Chirac, France's president, is demanding 'border-tax adjustments' (i.e., tariffs) to be charged on goods from countries that do not constrain carbon. The more ambitious the European targets for cutting carbon, the higher the cost will be, and the louder those calls will become.
There is one thing that would make it easier for Europe to stick to its ambitious targets - federal legislation in America. California and Europe are travelling hand-in-hand along their green path; but federal-level legislation will be more effective in dampening the volume of complaints in Europe. And if America does not act, Europe will undoubtedly, at some point, give up on greenery.
Higher costs for European companies will have two effects. They will increase conflict between the Commission, which sees combating climate change as its main aim at the moment, and member states. And it will raise calls for protectionism. That's happening already. Jacques Chirac, France's president, is demanding 'border-tax adjustments' (i.e., tariffs) to be charged on goods from countries that do not constrain carbon. The more ambitious the European targets for cutting carbon, the higher the cost will be, and the louder those calls will become.
There is one thing that would make it easier for Europe to stick to its ambitious targets - federal legislation in America. California and Europe are travelling hand-in-hand along their green path; but federal-level legislation will be more effective in dampening the volume of complaints in Europe. And if America does not act, Europe will undoubtedly, at some point, give up on greenery.
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