
But that was then. A year on, leaders from countries with powerful heavy-industry lobbies called for explicit measures to “protect” European firms, in case talks on a global climate-change deal failed. The most important European countries all asked the EU to plan for failure, insisting that defensive measures must be agreed before climate-change talks in Copenhagen at the end of 2009.
Demanding “certainty” today for businesses that have to make long-term investment decisions, the heads of governments asked for a list of energy-intensive industries “particularly exposed to international competition”. Industries making steel, aluminium, paper, chemicals and bricks were all cited.
The excuses were that heavy industry would move to countries with “lower standards” unless helped to stay. Witch really means that they are afraid that the carbon-spewing firms might move to places with weaker environmental laws.
If Europe lets favored industries fight Chinese or Indian rivals with a “race to the bottom” on emissions, that means other bits of the economy must slash emissions even more. If you do the right thing, you will not be on a level playing-field with those doing the wrong thing.