<html><head><meta http-equiv="Content-Type" content="text/html; charset=us-ascii"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div class=""><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: "Times New Roman", serif;" class=""><a href="https://www.reuters.com/business/sustainable-business/g20-countries-can-take-several-paths-cut-carbon-emissions-yellen-says-2021-07-09/" style="color: rgb(5, 99, 193);" class="">https://www.reuters.com/business/sustainable-business/g20-countries-can-take-several-paths-cut-carbon-emissions-yellen-says-2021-07-09/</a><o:p class=""></o:p></span></div></div><div class=""><i style="font-family: Calibri, sans-serif; font-size: 11pt;" class=""><span style="font-size: 12pt; font-family: "Times New Roman", serif;" class=""> </span></i></div><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">US's Yellen urges better coordination on carbon policy<o:p class=""></o:p></span></b></div><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: "Times New Roman", serif;" class="">By David Lawder<o:p class=""></o:p></span></div><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-family: "Times New Roman", serif; font-size: 12pt;" class="">7/9/21</span></div><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: "Times New Roman", serif;" class=""> </span></div><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">VENICE, July 9 (Reuters) - U.S. Treasury Secretary Janet Yellen called on Friday for better international coordination on carbon-cutting policies to avoid trade frictions, days before the European Union is due to unveil a controversial carbon border tax.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">The EU's carbon border adjustment mechanism (CBAM) would impose levies on the carbon content of imported goods in an effort to discourage "carbon leakage", the transfer of production to countries with less onerous emission restrictions.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">Speaking as G20 finance ministers met in Venice, Yellen said there were multiple paths to achieve the emissions cuts needed to tackle climate change besides explicit carbon-pricing.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">"It's important that any carbon border adjustment system focus on the degree to which a country's climate policies reduce emissions, and hence carbon content, rather than focus only on explicit carbon pricing," Yellen told a climate tax forum.</span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">"Recognizing the different paths countries are taking to address climate change could help avoid policy measures to address carbon leakage that inadvertently create new international risks and spillovers," she added.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">Yellen said countries in the club of G20 large economies would need to make significant public and private investments and take "difficult economic decisions" to achieve the goals of decarbonizing their economies by mid-century.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">Approaches could include regulatory restrictions and emissions standards, direct public investments, public subsidies to incentivize private investments, and carbon markets.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">The Biden administration is pursuing major public investments to decarbonize the U.S. power and transportation sectors, she said.</span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">This is different from the EU's plans to unveil on July 14 the world's first levy on carbon imports as part of a package of legislation to cut net greenhouse gas emissions by 55% by 2030 from 1990 levels.<o:p class=""></o:p></span></p><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;" class=""><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">Levies will reflect benchmark prices on the EU's emissions trading system (ETS),the largest carbon market in the world. But EU trading partners doubt the scheme will reduce emissions and think it could act as a protectionist tool. <a href="https://www.reuters.com/business/sustainable-business/europe-faces-sceptical-globe-with-carbon-border-levy-2021-07-05/" style="color: rgb(5, 99, 193);" class=""><span style="color: rgb(64, 64, 64);" class="">read more</span></a><o:p class=""></o:p></span></div><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">French Finance Minister Bruno Le Maire, speaking at the same G20 forum, called for a global minimum price for carbon emissions in the absence of a single global price.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">"I think that a global floor could be a very good starting point to have all the G20 member countries committing on carbon pricing," Le Maire said.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">COST BURDEN ON POOR<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">Developing countries expressed caution in proceeding with a one-size-fits all approach, noting that the economic burden for low-income people will be high.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">Mexican Finance Minister Arturo Herrera said, for example, that the gasoline cost burden for Mexican families, of which more than half live below the poverty line, is 5% of disposable income, more than twice the 2% level in the United States.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">A cornerstone of Mexico's approach to emissions reduction will be more investment in clean public transportation, Herrera said.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">Yellen suggested coordination such as taking a common approach to climate-related data and financial disclosures through groups like the Financial Stability Board, and using the G20 finance track's Sustainable Finance Working Group as a forum to discussed proposed climate pricing measures.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">She also said the Biden administration was still considering a range of other carbon reduction policies, including some that would put an "implicit price" on carbon emissions, and provide a point of comparison to other countries' carbon prices.<o:p class=""></o:p></span></p><p class="texttext3evx1j" style="margin-right: 0in; margin-left: 0in; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 24pt; -webkit-font-smoothing: antialiased; font-variant-ligatures: normal; orphans: 2; widows: 2;"><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class="">She did not provide details of these measures but Biden administration officials have said they would consider carbon border adjustment measures.<o:p class=""></o:p></span></p><div class=""><span style="font-size: 12pt; font-family: "Times New Roman", serif; color: rgb(64, 64, 64);" class=""><br class=""></span></div><div class="">
Arthur Stamoulis<br class="">Citizens Trade Campaign<br class="">(202) 494-8826<br class=""><br class=""><br class=""><br class="">
</div>
<br class=""></body></html>