EU Border Tax Adjustments and Climate Change: Reaching Consensus within the International Legal Context

The European Union (EU) recently adopted a consistent set of directives aiming, on the one hand, to reduce greenhouse gas (GHG) emissions and, on the other, to promote the development of renewable energies, within the framework of the environment protection envisaged by Council Directive 96/61/EC. As to the first issue, a regional cap and trade system (ETS) has been created via the adoption of Directive 2003/87/EC latterly amended by Directive 2009/29/EC. It provides for at least a 20 per cent reduction of greenhouse gases (GHGs) emission below 1990 levels by 2020. The second issue has been regulated through Directive 2001/77/EC, concerning the promotion of electricity produced from renewable energy sources in the internal electricity market, and Directive 2003/30/EC, regarding the promotion of the use of bio-fuels or other renewable fuels for transport. Such a regulation has been subsequently repealed by comprehensive Directive 2009/28/EC, within the context of the Roadmap for Renewable Energies adopted in 2007. It provides for a 20 per cent reduction target for the overall share of energy from renewable sources in transport. By virtue of Recital 25 Directive 2009/29, one of the most relevant means available to enforce such standards is the possibility to adopt Border Tax Adjustments (BTAs) towards products imported from states that do not adopt comparable measures.