As trade negotiations between Australia and Europe begin in earnest, a large bloc within the European parliament is considering imposing a carbon tax on all imports.
The Progressive Alliance of Socialists and Democrats (S&D) - the second largest bloc within the 747-member parliament - wants a border carbon tax considered among other new revenue-raising ideas for the next EU budget from 2020.
Party vice-president Isabelle Thomas says the imbalance between high contributions from individual countries and limited EU-wide revenue measures must be addressed with this next budget.
She's seized on measures suggested by a high-level working group led by former Italian prime minister and European Commissioner Mario Monti, which include the carbon tax.
"We don't want that it is only for citizens," Ms Thomas told reporters in Strasbourg of any new tax.
"We want that a carbon tax is at the border to regulate importations, not only on our artisans and producers."
She believes such an imposition would be defensible to the World Trade Organisation and would lead to a "virtuous cycle" on climate action since countries wanting to sell goods in Europe would have to do more to reduce their own emissions.
Mr Monti's report, delivered in January, said the move would reinforce Europe's credibility as a world leader in environmental protection and the fight against climate change.
Former US Republican congressman Bob Inglis would like to see Donald Trump establish a carbon tax on imports to that country, saying the president could couch it in terms of forcing China to pay up if it wants to send goods to America.
The European parliament will vote on Thursday (local time) on what issues should be discussed during trade talks with Australia.
Members of parliament want any deal to boost the EU economy while protecting its farmers and consumers.
If the negotiating framework is adopted, talks could formally being before the end of the year.
