On 18 December 2006, EU Trade News published a speech of the EU Trade Commissioner, Peter Mandelson on trade and climate change. Peter Mandelson highlights the importance of EU’s leadership in challenging climate change and gives specific examples on how to tackle the problem from a European trade perspective.

The speech addresses global climate change and EU global competitiveness. Mandelson suggests changing the approach to competitiveness bearing in mind impacts on the climate. The European economy is mostly built on goods and services so the EU can take the lead in trade and transfer of green technology. Europe has the chance to take the lead in shifting to renewable energy and green technology. He noted that emission trading is a necessity and that it will increase the costs of transport. However, trade and transfer of green technology will be the main force that will drive emissions down.

Peter Mandelson says that the priority in fighting climate change is international cooperation and calls for WTO zero tariff agreement on key green goods. He also rejected the idea of a Kyoto tax.

Read Peter Mandelson’s speech