Trade rules may need change to curb warming: Mandelson

The rules of the international trade system may need to be altered to tackle climate change and ward off the economic devastation higher temperatures could bring, the European Union's trade chief said on Friday.
Trade Commissioner Peter Mandelson mooted taking climate change into account on a range of policies from tax systems and procurement policies, but stopped short of recommending any concrete alterations to current regulations.
The costs of a warmer world justify a re-think of trade policy, he said, citing a recently-published British report which warned that ignoring climate change could lead to economic upheaval on the scale of the 1930s Depression.
"If this is true, and I happen to believe this analysis, then all policy including trade need to be activated to address this challenge," he told a seminar in Beijing which was his first event dedicated to trade and climate change.
"Do we need to change (the rules), for example by allowing lower tariffs for products produced in a climate friendly way? Or on products which are very energy efficient?" Mandelson said.
He suggested governments might alter rules for public procurement and consider educating citizens about the environmental impact of different products. "Would it be acceptable either to the public or finance ministries to say 'cost is not the only criteria, we want to procure products and services produced in a climate friendly way?" he asked the gathering of Chinese and European academics and business executives.
With its vast population, low per capita levels of water and arable land, and already-battered environment, China will be hard-hit by rising temperatures.
And as the number two emitter of greenhouse gasses, it needs to help lead efforts to tackle climate change, Mandelson said. "Whilst we have responsibility for the sins of the past, you have a growing responsibility...for the future," he said.
But China has no targets for limiting emissions of carbon dioxide, and Beijing says most cut-backs should come from developed nations that pumped out the gas as they industrialised.
Some analysts worry that the country's leaders, weighed down by problems ranging from international trade disputes to domestic discontent about corruption, pollution and a growing wealth gap, have shown little interest in tackling climate change. But Mandelson said the most pressing concern for Beijing is improving the ability to enforce regulations, which are often brushed aside in the quest for economic growth.
"Their awareness is growing and their commitment will follow. So I don't think its a lack of belief, but there are real problems about capacity and regulatory enforcement which China... will need to address," he added.