To face social and environmental problems generated by fossil energies, market-based solutions have emerged to tackle these challenges on a broader scale. These proposals are often also framed as a “green” approach to economic growth. They include e.g. regulatory disincentives for emitting CO2 through a form of carbon pricing or more specifically, emissions trading systems (ETS) and carbon taxes. Although their rationale sounds adequate, their design and implementation are flawed from different points of views and subsequently result in a minimal decrease of CO2 emissions. The following analysis will focus on the main causes of this (political) deficiency with a focus on Latin America. Maximiliano Proaño has the details.
All posts tagged: carbon tax
Corona Crisis Presents Window to Decarbonize Global Trade
Global trade has been a notorious difficult sector to sign up for decarbonization. The crux of the problem is that its business is crossborder, and thus skirts the emissions reduction plans of individual national states. Much of it thus gets a free ride. Paul Hockenos reports
A Transatlantic Green Deal Can Revive the US-EU Partnership
The so-called Green Deals on the table in Europe and the US present an enticing prospect to rejuvenate the greatly diminished transatlantic relationship — and help hit crucial climate targets before it is too late. The European Green Deal, proposed last year with much fanfare by EU commission president Ursula von der Leyen, overlaps significantly with the Green New Deal, an ecological spending program devised by congressional Democrats and endorsed by the party’s presidential candidate, Joe Biden. Paul Hockenos reports
Moscow cries foul over EU’s planned carbon border tax
Russia’s economic development minister warned last week that the EU’s plans to deploy a carbon tax at the bloc’s borders will not be in line with World Trade Organisation (WTO) rules, just as Brussels doubled down on the idea of green tariffs. Sam Morgan reports for EURACTIV.com
Go green or get out? The impact of an EU carbon border adjustment on third countries
The European Union (EU) is planning to tax carbon-intensive products as a strategy to decrease global emissions and avoid carbon leakage. But will exporters be able to adapt? Lilia Maximova, Gabriela F. Kilpp, Natalia Koto, and Bárbara Martins take a look.
Fridays for Future Shifts Gears
In the Corona crisis, the climate movement struggles to find its voice. Paul Hockenos gives us an update about the challenges the movement is facing under the current circumstances.
Sound and fury: Merkel’s Climate Cabinet and its shortcomings
Despite increasing public pressure, both coalition parties within Merkel’s so-called Climate Cabinet favor taxes or market based trading schemes to tackle the climate crisis instead of new regulations to increase renewable energy or hard measures to phase out fossil fuels. L. Michael Buchsbaum takes a look
Germany debates a carbon tax – this time, for real
On July 12, a group of economists called on the German government to take quick climate action. This new proposal packs because the messenger officially advises the government – and doesn’t come from the climate camp. Craig Morris reports
Time for big muscle to drive South Africa towards a lower carbon economy
Fossil fuel industries still have an unfair advantage in South Africa: the economy externalises the costs of carbon emissions, the state subsidises the biggest emitters, and financial institutions still invest in high-carbon industries. How can the country level the playing fields for a greener economy? Leonie Joubert takes a look
Why not fly? In the age of climate change, the personal can be thoroughly political
Why should individuals refashion their lifestyles to cut down on emissions when the real battlefield is the political arena? Critics say environmentalists focus too much on personal choices rather than fighting for systemic change. Paul Hockenos says he’s on board with the larger goal, but there are valid reasons to start decarbonizing at home.