How would a cross border carbon tax impact climate change and world trade?

In the run-up to COP26, the UK has made it clear that negotiations will include finalizing the rules for implementing the Paris Agreement[1]. 

In particular, the creation of a voluntary and cooperative carbon market – which is addressed in Article 6 of the ‘Paris Rulebook’ – is expected to be the subject of much debate this year. At present, with no consensus on a global carbon pricing yet reached among the Parties, 64 local initiatives have been established[2] and others are underway.

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