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TEQs & Carbon Pricing
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Shaun Chamberlin

Joined: 04 Feb 2007
Posts: 119
Location: London

PostPosted: Tue Mar 11, 2008 6:42 pm    Post subject: Reply with quote

21st_century_caveman wrote:
TEQ's were mentioned on News Night last night by tow of the guests that were on to talk about green taxes

Thanks for the headsup 21st_century_caveman - I missed that one. If anyone else is interested to see the debate it runs from 14 minutes in in the Newsnight of 10th March 08 (can be seen free for the next 6 days through the BBCi player at: http://tinyurl.com/25r3ms )

As you say, Ken Clarke's response was interesting, but was I think a consequence of his firm adherence to 'reality', by which of course he means the current political reality of Business As Usual (or even perhaps the political reality when he was in power over a decade ago). As your signature highlights, scientific/physical reality will trump political reality big time if push comes to shove - the question is whether we can reconcile the two.

And as you imply, many Conservatives do recognise the potential of TEQs. As Sian Berry highlighted on Newsnight, TEQs would give individuals a choice between either being energy thrifty or being more profligate and effectively paying compensation to the energy thrifty in exchange for the right to do that. This personal freedom is an idea that many Conservatives find appealing, although as emordilap says, they often find the equity aspect less so!

I was a little confused by Stephen Hale (of the Green Alliance)'s position. He seemed to be saying that TEQs are too radical and that we don't have time to make such a shift and get rid of the expensive existing policies which would be made obsolete. But then he was simultaneously saying that what is necessary is a dramatic step-change in policy - mystifying!
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Posts: 184
Location: London

PostPosted: Sat Mar 15, 2008 12:37 pm    Post subject: Carbon Protectionism Reply with quote

Policymakers and advisers/advisors about the Globe are frantically trying to understand where they can position themselves on the Climate Change spectrum and still be in communion with their governments, populace, industries and experts.

Whichever Climate Change policies are adopted, be they Carbon Taxes (even income- or revenue-neutral) or some form of Carbon Rationing (under Cap-and-Trade, or Cap-and-Share, or Cap-and-Auction, or even Cap-and-Giveaway), there are clear pointers towards the Carbon Protectionism that will be the grit in the gearbox (see below).

Basically, there is a problem as certain industries/sectors are still considered vital to be ringfenced from Carbon Control. This idea has to be punctured, somehow.

Currently the European proposals for Carbon Taxation will be applied to countries outside the Eurozone, not inside. It is time for the governments to dissociate (dis-associate) themselves from their business lobbies, to put a scalpel between the flesh and bone of nation and corporation.

Some Carbon-intensive manufacturing and engineering sectors will necessarily fall by the wayside in the fast climb to Climate Protection. We have no room for Carbon Protectionism.


The Germans want to Protect Carbon :-


Concessions to Merkel threaten climate change plan

? Germany's heavy industry may get special treatment
? New wording threatens 2020 emissions target

Ian Traynor in Brussels
The Guardian,
Saturday March 15 2008

Europe's chances of spearheading a global post-Kyoto climate change
accord were jeopardised yesterday when Germany secured pledges that
several of its heavy industries could be protected from international
competition and exempted from the EU's plan to combat global warming.

The concessions, agreed at a summit of European leaders in Brussels,
will also complicate the chances of Europe delivering on its
commitments to slash greenhouse gas emissions by a fifth by 2020.

Under intense pressure from German industrial lobbies the chancellor,
Angela Merkel, won changes to the wording of the summit statement
ordering the European commission to spell out how "energy-intensive
industries" could be granted special treatment in the climate change




Merkel urges EU leaders to act on 'carbon leakage'
Published: Thursday 13 March 2008

German Chancellor Angela Merkel will press EU leaders meeting in
Brussels today and tomorrow to back urgent measures to prevent heavy
industries such as cement and steel from fleeing the continent, as the
bloc debates tighter limits on CO2 emissions after 2012.

EU heads of state and government are meeting in Brussels on 13-14
March for their traditional Spring Summit, which is going to focus on
climate change and economic issues (EurActiv 10/03/08).

In January, the Commission proposed to tighten the EU emissions
trading scheme (EU-ETS) for the period after 2012, a move which it
said could lead to a rise in electricity prices of up to 10-15%
(EurActiv 23/01/08).

But it added that, unless a global climate change agreement is
reached, a "compensation mechanism" would be put in place to prevent
'carbon leakage' whereby EU industries covered by the EU?ETS move to
other parts of the world, like China or India, where CO2 emissions are
not regulated.

Two options are being considered in that event:

* Granting free emission allowances to industries which are
particularly exposed to international competition, or;
* imposing a "carbon tax" on imports from countries with no CO2
emission constraints.




From The Times
March 13, 2008

EU threatens to punish climate deal rebels

David Charter in Strasbourg

America and China face trade protection measures from Europe if they
fail to join a global climate deal to replace the Kyoto Protocol, EU
leaders will caution at their summit in Brussels today.

Nations that refuse to curb greenhouse gases will be told that they
face "appropriate measures" ? code for trade sanctions ? if they try
to gain a competitive advantage by continuing to allow cheap,
high-pollution production.

EU leaders are particularly concerned to try to stop big companies
relocating from Europe to countries that refuse to join a post-2012
climate change agreement in order to avoid the EU's tough CO2 targets.


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